Meera Corporations comparative balance sheets are presented below. Meera Corporation Comparative Balance Sheets December 31 _ 2014

Question:

Meera Corporation’s comparative balance sheets are presented below.

Meera Corporation Comparative Balance Sheets December 31 _ 2014 © _ 2013 —

Cash $ 14,700 $ 10,700 Accounts receivable 20,800 23,400 Land 20,000 26,000 Buildings 70,000 70,000 Accumulated depreciation—buildings (1 5,000). (10,000)

Total $110,500 $120,100 Accounts payable SS 1D 70 $ 28,100 Common stock 75,000 72,000 Retained earnings 23,130 20,000 Total $110,500 $120,100 Additional information:

1. Net income was $22,630. Dividends declared and paid were $19,500.

2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $5,000.

Instructions

(a) Prepare a statement of cash flows for 2014 using the indirect method.

(b) Compute free cash flow.

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Financial Accounting

ISBN: 9780470929384

8th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, J. Mather

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