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Please tell me how to solve the numbers that are crossed. Prepare a statement of cash flows-indirect method, and compute free cash flow (SO 3,
Please tell me how to solve the numbers that are crossed.
Prepare a statement of cash flows-indirect method, and compute free cash flow (SO 3, 4) P14-7B Presented below are the financial statements of Molina Company MOLINA COMPANY Comparative Balance Sheets December 31 2007 2008 Assets Cash Accounts receivable Merchandise inventory Property, plant, and equipment Less: Accumulated depreciation $33,000 $ 28,000 14,000 25,000 23,000 41,000 $70,000 (27,000)43,000 24,000) 54,000 $78,000 $126,000 $135,000 Total Liabilities and Stockholders E $ 31,000 26,000 20,000 25,000 33,000 $135,000 43,000 20,000 10,000 25,000 28,000 $126,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Tbtal MOLINA COMPANY Income Statement For the Year Ended December 31, 2008 $286,000 194,000 92,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $28,000 9,000 37,000 55,000 7,000 48,000 10,000 38,000 Additional data: XDividends ofsafwere declared and paid. 2. During the year equipment was sold for 810,000 cash. This equipment cost $13,000 originaty All depreciation expense, $6,00, is in the selling expense category 4. All sales and purchases are on account 5. Additional equipment was purchased for $5,000 cash. Instructions (a) Prepare a statement of cash flows using the indirect method. ^(b) Compute free cash flowStep by Step Solution
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