Business
Accounting
Presented on the next page are the financial statements of

Presented on the next page are the financial statements of

Presented on the next page are the financial statements of Weller Company.

WELLER COMPANY Comparative Balance Sheets December 31 2010 2009 Assets $ 35,000 $ 20,000 14,000 Cash Accounts receivable

Additional data:
1. Dividends declared and paid were $25,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the operating expenses.
4. All sales and purchases are on account.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cashflow.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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WELLER COMPANY Comparative Balance Sheets December 31 2010 2009 Assets $ 35,000 $ 20,000 14,000 Cash Accounts receivable 33,000 Merchandise inventory Property, plant, and equipment Accumulated depreciation 27,000 20,000 60,000 78,000 (29,000) (24,000) $126,000 $108,000 Total Liabilities and Stockholders' Equity $ 15,000 $ 29,000 7,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 8,000 33,000 14,000 38,000 27,000 18,000 45,000 $126,000 $108,000 Total WELLER COMPANY Income Statement For the Year Ended December 31, 2010 $242,000 Sales Cost of goods sold 175,000 Gross profit Operating expenses 67,000 24,000 Income from operations Interest expense 43,000 3,000 Income before income taxes 40,000 8,000 $ 32,000 Income tax expense Net income