2024 – E5 15 Preparation of a Statement of Cash Flows Presented below is a condensed version of the comparative balance sheets

E5-15 (Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.

 

2010 2009

Cash $157,000 $ 78,000

Accounts receivable 180,000 185,000

Investments 52,000 74,000

Equipment 298,000 240,000

Less: Accumulated depreciation (106,000) (89,000)

Current liabilities 134,000 151,000

Capital stock 160,000 160,000

Retained earnings 287,000 177,000

Additional information: Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000. Instructions

 

(a) Prepare a statement of cash flows for 2010 for Sondergaard Corporation.

(b) Determine Sondergaard Corporation’s free cash flow..