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WILLINGHAM CORPORATION Comparative Balance Sheet December 3 2011 2010 Cash $14300 $10700 Accounts receivable 21200 23400 Land 20000 26000 Building 70000 70000 Accumulated depreciation (15000) (10000) Total $ 110500 $ 120100 Accounts payable $ 12370 $31100 Common stock 75000 69000 Retained earnings 23130 20000 Total $110500 $120100 Additional information: 1. Net income was $22630. Dividends declared and paid were $19500. 2. 2. All other changes in noncurrent account balances had a direct effect on cash flow except the change in accumulated depreciation. The land was sold for $4900. a). Prepare a statement of cash flow for 2011 using the direct method. b). Compute free cash flow.An analysis of comparative balance sheets the current year s income statement and the general ledger accounts of Conard Corp. uncovered the following items . Assume all items involve cash unless there is information to the contrary. (a). Payment of interest on notes payable (h). Issuance of capital stock. (b). Exchange of land for patent. (i). Amortization of patent (c). Sale of building at book value (j). Issuance of bonds for land. (d). Payment of dividends. (k). Purchase of Land. (e). Depreciation. (l). Conversation of bonds into common stock. (f). Receipt of dividends on investment in stock. (m). Loss on sale of land. (g). Receipt of interest on notes receivable. (n). Retirement of bonds. Indicate how each item should be classified in thee statement of cash flows using these four major classifications: operation activity ( indirect method) investing activity financing activity and significant investing and financing activity.2. The current section of Leach Inc s balance sheet at December 31 2010 and Leach s net income for 2011 was $153000. Depreciation expense was $24000. 2011 2010 Current assets Cash $105000 $99000 Accountings receivable 110000 89000 Inventory 158000 172000 Pre paid expenses 27000 22000 Total current assets $400000 $382000 Current liabilities Accrued expenses payable $ 15000 $ 5000 Accounts payable 85000 92000 Total current liabilities $100000 $97000 Prepare the cash net provided by operating activities section of the company s statement of cash flow for the year ended December 31 2011 using the indirect method.

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