Exercise 5-18 (Part Level Submission) The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2014 appear below.

MADRASAH CORPORATION BALANCE SHEETS
Dec.31,2014	Jan.1,2014	Inc./Dec.
Assets
Cash	$21,872	$15,200	$6,672	Inc.
Accounts receivable	107,872	90,200	17,672	Inc.
Equipment	40,872	24,200	16,672	Inc.
Less: Accumulated Depreciation-Equipment	(17,000	)	(11,000	)	6,000	Inc.
Total	$153,616		$118,600
Liabilities and Stockholders Equity
Accounts payable	$21,872	$17,200	4,672	Inc.
Common stock	101,872	82,200	19,672	Inc.
Retained earnings	29,872		19,200		10,672	Inc.
Total	$153,616		$118,600

Net income of $45,872was reported, and dividends of $35,200were paid in 2014. New equipment was purchased and none was sold.

(a)

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Prepare a statement of cash flows for the year 2014. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Madrasah Corporation Statement of Cash Flows For the Year Ended December 31, 2014

	$
Adjustment to reconcile net income to

	$

	$

$

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(b) Compute the current ratio (current assets current liabilities) as of January 1, 2014, and December 31, 2014. (Round ratios to 1 decimal place., e.g. 4.5.)

December 31, 2014	January 1, 2014
Current ratio

Compute free cash flow for the year 2014.

Free Cash Flow

$

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(c)