Q1) Cade Corporation's balance sheet and income statement listed below:
Comparative Balance Sheet
|
|
Ending Balance
|
Beginning Balance
|
Assets:
|
|
|
Cash and cash equivalents
|
$ 27
|
$ 26
|
Accounts receivable
|
57
|
53
|
Inventory
|
62
|
55
|
Plant and equipment
|
685
|
580
|
Accumulated depreciation
|
( 404)
|
( 355)
|
Total assets
|
$427
|
$359
|
Liabilities and stockholders' equity:
|
Accounts payable.
|
$ 37
|
$ 46
|
Wages payable
|
21
|
25
|
Taxes payable
|
15
|
18
|
Bonds payable
|
171
|
170
|
Deferred taxe
|
23
|
22
|
Common stock
|
27
|
30
|
Retained earnings
|
133
|
48
|
Total liabilities and stockholders' equity
|
$427
|
$359
|
Income Statement
|
Sales
|
$895
|
Cost of goods sold
|
557
|
Gross margin
|
338
|
Selling and administrative expense
|
177
|
Net operating income
|
161
|
ncome taxes
|
48
|
Net income
|
$113
|
Cade sold some equipment during period which had cost $100 and had accumulated depreciation of $85. Equipment was sold for $15.
Make a statement of cash flows in good form using indirect method to find out cash from operations. On the basis of cash flow statement reply following questions:
1. How much cash did Cade pay to vendors for inventory in the period?
2. How much cash did Cade pay in income taxes?
3. Compute free cash flow for Cade.