Question

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.

Answer 1

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