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Scully Corporation’s comparative balance sheets are presented below.
SCULLY CORPORATION Comparative Balance Sheets December 31 2010 2009 $ 10,700 23,400 26,000 70,000 (10,000) $ 14,300 21,2
Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
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 $4,900.
Instructions
(a) Prepare a statement of cash flows for 2010 using the indirect method.
(b) Compute free cash flow.
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