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NEWMAN CORPORATION Comparative Statement of Financial Position December 31 2020 Equipment $ 60,000 Accumulated depreciation (14,000) Investments 25,000 Accounts receivable 25,200 Cash 14,200 Total $110,400
NEWMAN CORPORATION Comparative Statement of Financial Position December 31 2020 Equipment $ 60,000 Accumulated depreciation (14,000) Investments 25,000 Accounts receivable 25,200 Cash 14,200 Total $110,400 2019 $ 70,000 (10,000) 16,000 22,300 17,700 $116,000 Share capital-ordinary Retained earnings Bonds payable Accounts payable Total $ 50,000 35,800 10,000 14.600 $110,400 $ 45,000 29,900 30,000 11.100 $116,000 Additional information: 1. Net income was $21,300. Dividends declared and paid were $15,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $2,200 was sold for $5,800. 3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. Instructions (a) Prepare a statement of cash flows for 2020 using the indirect method. (b) Compute free cash flow
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