Question 5 ACC4250 (F) / Page 5 of 6 Newman Corporation's comparative balance sheets are presented below. NEWMAN CORPORATION Comparative Balance Sheets December 31 2010 2009 RM10,200 RM 17,700 25,200 22,300 25,000 16,000 Cash Accounts receivable Investments Equipment Accumulated depreciation Total Accounts payable Bonds payable 60,000 (14,000) RM 106.400 RM 14,600 70,000 (10,000) RM 116.000 $11,100 Common stock Retained earnings Total Additional information: 10,000 30,000 50,000 45,000 31,800 29.900 RM 106,400 RM 116,000 1. Net income was RM 15,300. Dividends declared and paid during the year 2010 were RM 13,400. 2. Equipment which cost RM 10,000 and had accumulated depreciation of RM 2,200 was sold for RM 3,800, during the year 2010. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. Required (a) Prepare a statement of cash flows for 2010 using the indirect method as per MFRS107. (b) Compute free cash flow. (22 marks) (3 marks) (Total 25 marks)