1. The following is the balance sheet for Crown-well Inc. for the period ending December 2011:

Crown-well Inc.

Balance Sheet (2011)

Cash $ 24,000 Current Liabilities $ 30,000

Other current assets 51,000 Long-Term Notes payable 33,000

Total current assets 75,000 Bonds 40,000

Investments 40,000 Common Stock 150,000

Fixed Assets(Net) 125,000 Retained Earnings 49,000

Land 62,000

302,000 302,000

The following transactions occurred during 2012:

(i) $20,000, sale on some of its investments

(ii) $12,000, additional land for expansion

(iii) $10,000, bonds payment

(iv) $20,000, issuance of common stock

(v) $5,000, dividend payment to stockholders

(vi) $42,000, Net Income for 2012

(vii) $18,000, depreciation

(viii) $10,050, taxes

(ix) $10,000, Interest expense

(x) $18,000, purchase of second piece of land, using $12,000 in bonds and $6,000 in long-term notes payable.

Required:

a) Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.

b) Compute the firms free cash flows for 2012. (Hint: In computing FCF, please consider changes in investments and changes in Land as separate items from the Net Fixed Asset in the balance sheet)