E5.15B (LO 3) (Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Garcia Corporation for the last two years at December 31. Cash Accounts receivable Investments Equipment Less: Accumulated depreciation Current liabilities Capital stock Retained earnings 2020 $442,500 450,000 130,000 745,000 (265,000) 335,000 400,000 767,500 2019 $195,000 462,500 185,000 600,000 Instructions (a) Prepare a statement of cash flows for 2020 for Garcia Corporation. (b) Determine Garcia Corporation's free cash flow. (222,500) 377,500 400,000 442,500 Additional information: Investments were sold at a loss of $25,000; no equipment was sold; cash dividends paid were $75,000; and net income was $400,000.
E5.15B (LO 3) (Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Garcia Corporation for the last two years at December 31. Cash Accounts receivable Investments Equipment Less: Accumulated depreciation Current liabilities Capital stock Retained earnings 2020 $442,500 450,000 130,000 745,000 (265,000) 335,000 400,000 767,500 2019 $195,000 462,500 185,000 600,000 Instructions (a) Prepare a statement of cash flows for 2020 for Garcia Corporation. (b) Determine Garcia Corporation's free cash flow. (222,500) 377,500 400,000 442,500 Additional information: Investments were sold at a loss of $25,000; no equipment was sold; cash dividends paid were $75,000; and net income was $400,000.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 32BE
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