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Prepare statement of cash flow Additional information about Sharma Fabrics's operations during 2011 is as follows: (a) net income, $56,000; (b) building and equipment depreciation

image text in transcribed Prepare statement of cash flow
Additional information about Sharma Fabrics's operations during 2011 is as follows: (a) net income, $56,000; (b) building and equipment depreciation expense amounts, $30,000 and $6,000, respectively; (c) equipment that cost $27,000 with accumulated depreciation of $25,000 sold at a gain of $10,000 (d) equipment purchases, $25,000; (e) patent amortization, $6,000; purchase of patent, $2,000; (f) funds borrowed by using notes payable, $50,000, notes payable repaid, $30,000, (g) land and building purchased for $324,000 by signing a mortgage for the total cost (h) 3,000 shares of $20 par value common stock issued for a total of $100,000, and (i) paid cash dividend, $18,000. Required Using the indirect method, prepare a statement of cash flows for Sharma Fabrics, Inc Why did Sharma Fabrics an increase in cash of $134, 400 when it recorded net income of only $56,000? Discuss and interpret. Compute and assess cash flow yield and free cash flow for 2011.What is your assessment of Sharma's cash-generating ability

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