See Case cash fows Spring 2015.docx

I have to answer the questions in the attached file and i need help.

Accounting 301, Intermediate Accounting, Spring 2015 Cash flows case: (indirect method). The net changes in the balance sheet accounts of Dubai, Inc. for the year 2015 are shown below: Account Cash Debit Credit $ 95,600 Accounts receivable $ Allowance for doubtful accounts Inventory Prepaid expenses 64,000 10,000 197,200 20,000 Long-term investments 144,000 Land 400,000 Buildings 650,000 Machinery 100,000 Equipment 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Equipment Accounts payable 12,000 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Premium on bonds 36,000 Bonds payable Preferred stock ($50 par) 900,000 60,000 Common stock ($10 par) 156,000 Additional paid-in capitalcommon 223,200 Retained earnings 87,200 $1,805,200 Additional information: $1,805,200 1. Income Statement Data for Year Ended December 31, 2015 Income before extraordinary item $272,000 Extraordinary loss: Condemnation of land 132,000 Net income $140,000 2. Cash dividends of $128,000 were declared December 15, 2015, payable January 15, 2016. A 5% stock dividend was issued March 31, 2015, when the market value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $350,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The following entry was made to record an exchange of an old machine for a new one: Machinery ................................................................................. 160,000 Accumulated DepreciationMachinery................................... 40,000 Machinery ..................................................................... 60,000 Cash ............................................................................. 140,000 6. A fully depreciated copier machine which cost $28,000 was written off. 7. Preferred stock of $60,000 par value was redeemed for $80,000. 8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2015 for $25 a share. There were 87,600 shares outstanding on December 31, 2015. 9. Bonds were sold at 104 on December 31, 2015. 10. Land that was condemned had a book value of $240,000. 11. Beginning Cash balance was $0 Instructions 1. Prepare a statement of cash flows (indirect method). Ignore tax effects. 2. What is the free cash 3. What are the advantages of using the statement of cash flows for businesses