Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.
|
|
2017
|
2016
|
|
Cash
|
177,000
|
78,000
|
|
Accounts Receivable
|
180,000
|
185,000
|
|
Investments
|
52,000
|
74,000
|
|
Equipment
|
298,000
|
240,000
|
|
Accumulated Depreciation-Equipment
|
(106,000)
|
(89,000)
|
|
Current Liabilities
|
134,000
|
151,000
|
|
Common Stock
|
160,000
|
160,000
|
|
Retained Earnings
|
307,000
|
177,000
|
Additional information:
Investments were sold at a loss of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.
A. Prepare a statement of cash flows for 2017 for Zubin Mehta Corporation
B. Determine Zubin Mehta Corporation's free cash flow.