Note: Homework is graded on completion basis. Make sure you make a thorough effort on each question to ensure full points are earned. Note: Part 1 and Part 2 are not related problems. Part 1 - Balance Sheet Credit S Debit 197,000 435,000 $ 25,000 597,000 153,000 600,000 60,000 1,040,000 152.000 260,000 160,000 195,000 299,000 277.000 455,000 Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Supplies Inventory Debt Investments (trading) cost 145000 Equipment Accumulated Deperciation - Equipment Building Accumulated Deperciation - Building Land Franchises Patents Debt Investments (long-term) Equity Investments (long-term) Accounts Payable Salaries and Wages Payable Notes Payable (short-term) Dividends Payable Accrued Liabilities Notes Payable (long-term) Bonds Payable Common Stock, Par $5.00 APIC Treasury Stock Retained Earnings Cash Dividends Sales Revenue Sales Discounts Sales Returns and Allowances COGS Purchase Discounts Freight in Selling Expenses Administrative Expenses Interest Expense Rent Revenue Gain Income Tax Expense Investment Revenue 90,000 136,000 96,000 900.000 1,000,000 1,000,000 80,000 $ 191,000 78,000 $ 8,100,000 4,800,000 $ $ $ $ 2.000.000 900,000 211,000 80.000 $ $ 12,315,000 63,000 12,315,000 Required: Prepare the balance sheet. Note: Ignore income taxes. Note: Ending Retained Earnings is $410,000. I am providing this information to you so that you do not need to prepare an income statement and retained earnings statement. Part 2 - Statement of Cash Flows 12/31/15 1/1/15 Cash Accounts Receivable Equipment Accumulated Depreciation - Equipment $ 120,000 $ 206,000 $ 139,000 $ (17,000) $ 448,000 $ $ $ $ $ 113,000 188,000 122,000 (11,000) 412,000 Accounts Payable Common Stock Retained Earnings $ 220,000 $ 100,000 $ 128,000 $ 448,000 $ $ $ $ 215,000 80,000 117,000 412,000 Other Information Net income reported $ 144,000 Dividends paid $ 133,000 New Equipment was puchased and none was sold. Required: 1. Prepare the statement of cash flows for the year 2015. 2. Compute free cash flow