Question
The following are the financial statements of Monty Corp.. Monty Corp. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $37,600 $20,700 Accounts receivable 32,200
The following are the financial statements of Monty Corp..
Monty Corp. Comparative Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
Assets | 2020 | 2019 | ||||
Cash | $37,600 | $20,700 | ||||
Accounts receivable | 32,200 | 18,000 | ||||
Inventory | 29,800 | 20,200 | ||||
Equipment | 59,800 | 77,100 | ||||
Accumulated depreciationequipment | (29,600 | ) | (23,200 | ) | ||
Total | $129,800 | $112,800 | ||||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $28,700 | $16,900 | ||||
Income taxes payable | 7,500 | 8,000 | ||||
Bonds payable | 26,200 | 33,200 | ||||
Common stock | 19,000 | 13,200 | ||||
Retained earnings | 48,400 | 41,500 | ||||
Total | $129,800 | $112,800 |
Monty Corp. Income Statement For the Year Ended December 31, 2020 | ||
---|---|---|
Sales revenue | $242,800 | |
Cost of goods sold | 176,500 | |
Gross profit | 66,300 | |
Operating expenses | 23,900 | |
Income from operations | 42,400 | |
Interest expense | 3,900 | |
Income before income taxes | 38,500 | |
Income tax expense | 7,600 | |
Net income | $30,900 |
Additional data:
1. | Dividends declared and paid were $24,000. | |
2. | During the year, equipment was sold for $9,600 cash. This equipment cost $17,300 originally and had a book value of $9,600 at the time of sale. | |
3. | All depreciation expense, $14,100, is in the operating expenses. | |
4. | All sales and purchases are on account. |
Compute free cash flow.
Free cash flow | $enter Free cash flow in dollars |
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