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Problem 12-08A a-b (Part Level Submission) a The following are the financial statements of Pina Colada Corp.. Pina Colada Corp. Comparative Balance Sheets December 31
Problem 12-08A a-b (Part Level Submission) a The following are the financial statements of Pina Colada Corp.. Pina Colada Corp. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation-equipment (29,800) (23,700) Total $130,000 $113,100 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,700 $ 16,100 7,100 8,000 26,300 32,500 18,200 13,600 49,700 42,900 $130,000 $113,100 Pina Colada Corp. Income Statement For the Year Ended December 31, 2020 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200 Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equipment cost $18,200 originally and had a book value of $8,700 at the time of sale. 3. All depreciation expense, $15,600, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. (a) ) Prepare statement of cash flows for Pina Colada Corp. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Pina Colada Corp. Statement of Cash Flows $ cash payments: $ Compute free cash flow. Free cash flow
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