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CE 13-4 Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flow method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets
CE 13-4 Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flow method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 73,000 $ 22.000 Accounts receivable 87,000 76,000 Inventories 170.000 191,000 Land 72.000 100,000 Equipment 260.000 200,000 Accumulated depreciation (65,000) (32.000) Total $ 596.000 $ 557,000 Liabilities and Stockholders' Equity Accounts payable $ 37.000 $ 47,000 Bonds payable 150.000 210.000 Common stock ($1 par) 216.000 174.000 Retained earnings 193.000 126.000 Total $ 596,000 $ 557,000 Additional information: 1. Net income for 2017 was $100,000. 2. Cash dividends of $33,000 were declared and paid. 3. Bonds payable amounting to $60,000 were redeemed for cash $60.000. 4. Common stock was issued for $42,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $36,000 during sold at cost. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow for 2017
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