Acc421 Intermediate Accounting: E5-15 Presented below is a condensed version of the comparative

Acc421 Intermediate Accounting

E5-15 (Preparation of a Statement of Cash Flows)
Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.
2010 2009
Cash 157,000 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Less: Accumulated depreciation (106,000) (89,000)
Current liabilities 134,000 151,000
Capital stock 160,000 160,000
Retained earnings 287,000 177,000
Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.

Instructions
(a) Prepare a statement of cash flows for 2010 for Sondergaard Corporation.
(b) Determine Sondergaard Corporation's free cash flow.
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