Exercise 128 Whispering Winds Corps comparative balance shee

Exercise 12-8 Whispering Winds Corp.\'s comparative balance sheets are presented below Whispering Winds Corp. Comparative Balance Sheets 10,300 Accounits payable 12,7002,200 Retaned eaming Additional information: 1 Net income was $22,400. Dividends declared and paid were $15,000 2. No noncash investing and financing activities occurred during 2019 The land was sold for cash of $4,500. Prepare a statement of cash flows for 2019 using the indirect method (Show amounts that decrease cash flow with either a -sign e.g 15,000, or in parenthesis e.g. (15,000).) Whispering Winds Corp. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g.

Solution

Cash flow Statement Cash flows from operating activities: net income for the yeear 22400 Adjustment Depreciation 4800 Loss on sale of land 1100 Decrease in AR 1900 Decrease in Accounts payable -15500 -7700 Net cashh provided from Operating activities 14700 Cash flows from Investing ac tivities: Sale of land 4500 Cash flows from Financing activities Dividend paid -15000 Issue of common Stock 700 Net Cash used in financing activities -14300 Net cassh increase in cash 4,900 Beginning Balance in cash 10,200 Ending balance of cash 15,100 Free Cash flows: Cash flows from operating activities: net income for the yeear 22400 Adjustment Depreciation 4800 Loss on sale of land 1100 Decrease in AR 1900 Decrease in Accounts payable -15500 -7700 Net cashh provided from Operating activities 14700 Cash flows from Investing ac tivities: Sale of land 4500 FREE CASH FLOW 19200