Problem - Willingham Corporation's comparative balance sheets are presented below.
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WILLINGHAM CORPORATION Comparative Balance Sheets December 31
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2011
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2010
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Cash
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$14,170
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$10,750
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Accounts receivable
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21,150
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23,360
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Land
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20,990
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26,300
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Building
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70,450
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70,450
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Accumulated depreciation
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(15,080)
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(10,430)
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Total
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$111,680
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$120,430
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Accounts payable
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$12,040
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$31,050
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Common stock
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74,860
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68,850
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Retained earnings
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24,780
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20,530
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Total
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$111,680
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$120,430
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Additional information:
1. Net income was $22,550. Dividends declared and paid were $18,300.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,830.
Required -
Prepare a statement of cash flows for 2011 using the indirect method.
Compute free cash flow.