Miroz Corporation's comparative balance sheets are presented below. MIROZ CORPORATION Comparative Balance Sheets December 31 2017 2016
Question:
Miroz Corporation's comparative balance sheets are presented below.
MIROZ CORPORATION
Comparative Balance Sheets
December 31 2017 2016
Cash RM18,700 RM 22,700
Accounts receivable 24,700 22,300
Investments 25,000 16,000
Equipment 59,000 70,000
Accumulated depreciation (14,500) (10,000)
Total RM112,900 RM121,000
Accounts payable RM 13,600 RM11,100
Bonds payable 6,000 30,000
Common stock 50,000 45,000
Retained earnings 43,300 34,900
Total RM112,900 RM121,000
Additional information:
1. Net income was RM17,700. Dividends declared and paid were RM9,300.
2. Equipment which cost RM11,000 and had accumulated depreciation of RM2,000 was sold for RM4,000.
3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Instruction
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Compute free cash flow.
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso