Question

In: Accounting

Statement of cash flows.(show your work) The information shown below is taken from the accounts of...

Statement of cash flows.(show your work)

The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017

Net income

$314,000

Amortization of patent

12,000

Proceeds from issuance of common stock

103,000

Decrease in inventory

27,000

Sale of building at a $15,000 gain

85,000

Decrease in accounts payable

15,000

Purchase of equipment

185,000

Payment of cash dividends

24,000

Depreciation expense

55,000

Decrease in accounts receivable

23,000

Payment of mortgage

75,000

Increase in short-term notes payable

8,000

Sale of land at a $5,000 loss

40,000

Purchase of delivery van

33,000

Cash at beginning of year

205,000

Instructions

  1. Prepare a statement of cash flows for Robinson Corporation for the year ended December 31, 2017.
  2. Calculate the Free cash Flow and discuss what it means.

Solutions

Expert Solution

Note:it is assumed that the value of fixed assets are after the calculation of profit or loss

ekkarill92 answered 2 years ago
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