Question: Analyzing Cash Flows (Medium) Consider the following comparative balance sheets for the Liquidity Company:
![1712_Dec.png](https://secure.tutorsglobe.com/CMSImages/1712_Dec.png)
The company paid a dividend of $150,000 during 2012 and there were no equity contributions or stock repurchases.
a. Calculate free cash flow generated during 2012.
b. Where did the increase in cash come from?
c. How would your calculation in part (a) change if the firm invested in short-term deposits rather than paying a dividend?