a. Sold at a gain of 7,000 furniture and fixtures that cost 35,600 on which it had accumulated depreciation of 28,800

b. Purchased furniture and fixtures in the amount of 39,600

c. Paid a 20,000 note payable and borrowed 40,000 on a new note

d. Converted bonds payable in the amount of 100,000 into 4,000 shares of common stock

e. Declared and paid 6,000 in cash dividends

1. Using the indirect method, prepare a statement of cash flows for William. Include a supporting schedule of noncash investing transactions and financing transactions.

2. What are the primary reasons for Williams large increase in cash from 2013 to 2014, despite its low net income?

3. Compute and assess cash flow yield and free cash flow for 2014. (Round to one decimal place.) Compare and contrast what these two performance measures tell you about Williams cash-generating ability.