The comparative balance sheets for Dingdong Corporation appear below: Additional information:
1. Profit for the year ending December 31, 2021 was $ 39,000.
2. Cash dividends of $ 20,000 were declared and paid during the year.
3. Equipment with cost of $ 30,000 and accumulated depreciation of $ 11,500 was sold for proceeds of $ 22,000.
4. Depreciation of property, plant and equipment for the year was properly recorded at $ 8,700.
Instructions
a) Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method.
b) Calculate free cash flow.

Question

The comparative balance sheets for Dingdong Corporation appear below:  Additional information:
1. Profit for the year ending December 31, 2021 was $ 39,000.
2. Cash dividends of $ 20,000 were declared and paid during the year.
3. Equipment with cost of $ 30,000 and accumulated depreciation of $ 11,500 was sold for proceeds of $ 22,000.
4. Depreciation of property, plant and equipment for the year was properly recorded at $ 8,700.
Instructions
a) Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method.
b) Calculate free cash flow.

Quizplus · Accepted Answer

The Answer of The comparative balance sheets for Dingdong Corporation appear below:  Additional information:
1. Profit for the year ending December 31, 2021 was $ 39,000.
2. Cash dividends of $ 20,000 were declared and paid during the year.
3. Equipment with cost of $ 30,000 and accumulated depreciation of $ 11,500 was sold for proceeds of $ 22,000.
4. Depreciation of property, plant and equipment for the year was properly recorded at $ 8,700.
Instructions
a) Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method.
b) Calculate free cash flow.

The Comparative Balance Sheets for Dingdong Corporation Appear Below