E13-9 Cassandra Corporation’s

Price: $1.99


E13-9 Cassandra Corporation’s comparative balance sheets are presented below

Cassandra Corporation
Comparative Balance Sheets
31-Dec
		2014	2013
Cash		17,000	17,700
Accounts receivable		25,200	22,300
Investments		20,000	16,000
Equipment		60,000	70,000
Accumulated depreciation-equipment		(14,000)	(10,000)
Total		108,200	116,000
Accounts payable		14,600	11,100
Bonds payable		10,000	30,000
Common stock		50,000	45,000
Retained earnings		33,600	29,900
Total		108,200	116,000

Additional information:
1. Net income was $18,300. Dividends declared and paid were $14,600.
2. Equipment which cost $10,000 and had accumulated depreciation of $1,800 was sold
for $3,500.
3. All other changes in noncurrent account balances had a direct effect on cash flows,
except the change in accumulated depreciation.

Instructions
(a) Prepare a statement of cash flows for 2014 using the indirect method.
(b) Compute free cash flow.