Cassandra SA’s comparative statements of financial position are presented below.

Additional information:
1. Net income was €23,300. Dividends declared and paid were €14,600.
2. Equipment that cost €10,000 and had accumulated depreciation of €1,800 was sold for €3,500.
3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Instructions

a. Prepare a statement of cash flows for 2025 using the indirect method.

b. Compute free cash flow.
Compute net cash provided by operating activities—direct method.

Transcribed Image Text:

Cassandra SA Comparative Statements of Financial Position December 31 Equipment Accumulated depreciation-equipment Investments Accounts receivable Cash Total 2025 2024 60,000 70,000 (14,000) (10,000) 20,000 13,000 25,200 22,300 17,000 17,700 108,200 113,000 Share capital-ordinary 50,000 45,000 Retained earnings 33,600 24,900 Bonds payable 10,000 30,000 Accounts payable 14,600 13,100 Total 108,200 113,000