Question
Below is a condensed version of the comparative balance sheets for Sanchez Corporation for 2011 and 2012: 2012 2011 Cash $157,000 $78,000 Accounts Receivable 180,000
Below is a condensed version of the comparative balance sheets for Sanchez Corporation for 2011 and 2012:
| 2012 | 2011 |
Cash | $157,000 | $78,000 |
Accounts Receivable | 180,000 | 185,000 |
Investments | 52,000 | 74,000 |
Equipment | 298,000 | 240,000 |
Less Accumulated depreciation |
(106,000) |
(89,000) |
Current liabilities | 134,000 | 151,000 |
Common Stock | 160,000 | 160,000 |
Retained Earnings | 287,000 | 177,000 |
Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.
Required:
Calculate the companys free cash flow to the Common Equity Shareholder
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