The following is the balance sheet for Crown-well Inc. for the period ending December 2011:

Crown-well Inc.

Balance Sheet (2011)

Cash $ 24,000 Current Liabilities $ 30,000

Other current assets 51,000 Long-Term Notes payable 33,000

Total current assets 75,000 Bonds 40,000

Investments 40,000 Common Stock 150,000

Fixed Assets (Net) 125,000 Retained Earnings 49,000

Land 62,000

$ 302,000 $ 302,000

The following transactions occurred during 2012:

$20,000, sale on some of its investments

$12,000, additional land for expansion

$10,000, bonds payment

$20,000, issuance of common stock

$5,000, dividend payment to stockholders

$42,000, Net Income for 2012

$18,000, depreciation

$10,050, taxes

$10,000, Interest expense

$18,000, purchase of second piece of land, using $12,000 in bonds and $6,000 in long-term notes payable.

Required:

a) Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.

b) Compute the firms free cash flows for 2012. (Hint: In computing FCF, please consider changes in investments and changes in Land as separate items from the Net Fixed Asset in the balance sheet)

PLEASE SHOW ALL WORKINGS