Question Details

All other changes in noncurrent account balances had a direct effect 




Ex. 1
Planner Corporation's comparative balance sheets are presented below.
PLANNER CORPORATION
Comparative Balance Sheets
December 31
	   2014  	  2013	
	Cash	$ 21,570	$ 10,700
	Accounts receivable 	18,200	23,400
	Land	18,000	26,000
	Building	70,000	70,000
	Accumulated depreciation	  (15,000)	 (10,000)
	     Total	$112,770	$120,100
	Accounts payable	$  12,370	$31,100
	Common stock 	75,000	69,000
	Retained earnings	    25,400	   20,000
	    Total	$112,770	$120,100

Additional information:
1.	Net income was $27,900. Dividends declared and paid were $22,500.
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 $5,900.
Instruction
(a)	Prepare a statement of cash flows for 2014 using the indirect method.
(b)	Compute free cash flow.




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