1. The following is the balance sheet for Crown-well Inc. for the period ending December 2011:
Crown-well Inc.
Balance Sheet (2011)
|
Cash
|
$
|
24,000
|
Current Liabilities
|
$
|
30,000
|
|
Other current assets
|
|
51,000
|
Long-Term Notes payable
|
|
33,000
|
|
Total current assets
|
|
75,000
|
Bonds
|
|
40,000
|
|
Investments
|
|
40,000
|
Common Stock
|
|
150,000
|
|
Fixed Assets(Net)
|
|
125,000
|
Retained Earnings
|
|
49,000
|
|
Land
|
|
62,000
|
|
|
|
|
|
|
$
|
302,000
|
|
|
$
|
302,000
|
The following transactions occurred during 2012:
$20,000, sale on some of its investments
$12,000, additional land for expansion
$10,000, bonds payment
$20,000, issuance of common stock
$5,000, dividend payment to stockholders
$42,000, Net Income for 2012
$18,000, depreciation
$10,050, taxes
$10,000, Interest expense
$18,000, purchase of second piece of land, using $12,000 in bonds and $6,000 in long-term notes payable.
Required:
a) Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.
b) Compute the firm's free cash flows for 2012.
(Hint: In computing FCF, please consider changes in investments and changes in Land as separate items from the Net Fixed Asset in the balance sheet)