Question
Pharoah Companys comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020 2019 Cash $ 17,000 $ 17,500 Accounts receivable 25,000
Pharoah Companys comparative balance sheets are presented below:
Pharoah Company Comparative Balance Sheets December 31
2020
2019
Cash
$ 17,000
$ 17,500
Accounts receivable
25,000
22,400
Investments
19,850
16,050
Equipment
60,050
69,750
Accumulated depreciationequipment
(13,750
)
(10,400
)
Total
$108,150
$115,300
Accounts payable
$ 14,750
$ 11,250
Bonds payable
10,400
30,000
Common stock
49,500
45,200
Retained earnings
33,500
28,850
Total
$108,150
$115,300
Additional information:
1.Net income was $18,450. Dividends declared and paid were $13,800.
2.Equipment which cost $9,700 and had accumulated depreciation of $1,700 was sold for $3,300.
3.No noncash investing and financing activities occurred during 2020
Prepare a statement of cash flows for 2020 using the indirect method.
Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Free cash flow |
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