Muldur Corporation's comparative balance sheets are presented below.
| MULDUR CORPORATION |
| Comparative Balance Sheets |
|
December 31
|
|
2012
|
|
2011
|
| Cash |
$ 15,200 |
|
$ 17,700 |
| Accounts receivable |
25,200 |
|
22,300 |
| Investments |
20,000 |
|
16,000 |
| Equipment |
60,000 |
|
70,000 |
| Accumulated depreciation |
(14,000)
|
|
(10,000)
|
| Total |
$106,400
|
|
$116,000
|
|
|
|
|
| Accounts payable |
$ 14,600 |
|
$ 11,100 |
| Bonds payable |
10,000 |
|
30,000 |
| Common stock |
50,000 |
|
45,000 |
| Retained earnings |
31,800
|
|
29,900
|
| Total |
$106,400
|
|
$116,000
|
Additional information:
- Net income was $18,300. Dividends declared and paid were $16,400.
- Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300.
- All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Prepare a statement of cash flows for 2012 using the indirect method.Compute free cash flow