Saudade Corporation

Comparative Balance Sheets

For Years Ended June $30,2014$ and $2013$

The following is additional information about $2014$: $($a$)$ equipment that cost $$49,000$

with accumulated depreciation of $$33,000$ was sold at a loss of $$7,500$; $($b$)$ land and

building were purchased in the amount of $$201,000$ through an increase of $$201,000$

in the mortgage payable; $($c$)$ a $$48,000$ payment was made on the mortgage; $($d$)$ the

notes were repaid, but the company borrowed an additional $$75,000$ through the issu$-$

ance of a new note payable; and $($e$)$ a $$180,000$ cash dividend was declared and paid.

REQUIRED

Use the direct method to prepare a statement of cash flows. Include a supporting

schedule of noncash investing and financing transactions. Do not include a recon$-$

ciliation of net income to net cash flows from operating activities.

What are the primary reasons for Saudade's large increase in cash from $2013$ to

$2014?$

Compute and assess cash flow yield and free cash flow for $2014.($Round to one

decimal place.$)$