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The Sharjah Corporation reported the following balance sheet data for 2020 and 2019: 2020 2019 Cash $ 77,375 $ 22,955 Available-for-sale securities (not cash equivalents)
The Sharjah Corporation reported the following balance sheet data for 2020 and 2019:
2020 | 2019 | |||
Cash | $ 77,375 | $ 22,955 | ||
Available-for-sale securities | ||||
(not cash equivalents) | 15,500 | 85,000 | ||
Accounts receivable | 80,000 | 68,250 | ||
Inventory | 165,000 | 145,000 | ||
Prepaid insurance | 1,500 | 2,000 | ||
Land, buildings, and equipment | 1,250,000 | 1,125,000 | ||
Accumulated depreciation | (610,000) | (572,000) | ||
Total assets | $ 979,375 | $ 876,205 | ||
Accounts payable | $ 76,340 | $ 148,670 | ||
Salaries payable | 20,000 | 24,500 | ||
Notes payable (current) | 25,000 | 75,000 | ||
Bonds payable | 200,000 | 0 | ||
Common stock | 300,000 | 300,000 | ||
Retained earnings | 358,035 | 328,035 | ||
Total liabilities and shareholders' equity | $ 979,375 | $ 876,205 |
Additional information for 2020:
- Sold available-for-sale securities costing $69,500 for $74,000.
- Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
- Issued 6% bonds payable at face value, $200,000.
- Purchased new equipment for $145,000 cash.
- Paid cash dividends of $20,000.
- Net income was $50,000.
4.The net cash provided (used) by operating activities during 2020
Operating activities
5.The net cash provided (used) by investing activities during 2020
Investing activities
6.The net cash provided by financing activities during 2020
7. Compute the free cash balance
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