Required:a) Prepare a statement of cash flows for the year ended 2008, using the indirect method.b) Calculate the free cash flow and comment on it. Question-1A comparative balance sheet for Iner Corporation is presented below:INER CORPORATIONComparative Balance Sheet20082007Assets$ 36,00080,00025,00018,00070,000(20,000)Total assets $209,000$ 31,00060,00017,000CashAccounts receivable (net)Prepaid insuranceLand40,000EquipmentAccumulated depreciation60,000(13,000)$195.000Liabilities and Stockholders' EquityAccounts payableBonds payable$ 11,00027,000140,00031,000Total liabilities and stockholders' equity $209.000$ 6,00019,000115,00055,000$195,000Common stockRetained earningsAdditional information:1. Net loss for 2008 is $15,000.2. Cash dividends of $9,000 were declared and paid in 2008.3. Land was sold for cash at a loss of $7,000. This was the only land transaction during the year.4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for$5,000 cash.5. $12,000 of bonds were retired during the year at carrying (book) value.6. Equipment was acquired for common stock. The fair market value of the stock at the time ofthe exchange was $25,000.7. Collection of long-term loan to a supplier $15,0008. Acquisition of WSD, net of cash and cash equivalents acquired $15000

Name: Required:a) Prepare a statement of cash flows for the year ended 2008,
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Description: Required:a) Prepare a statement of cash flows for the year ended 2008, using the indirect method.b) Calculate the free cash flow and comment on it. Question-1A comparative balance sheet for Iner Corporation is presented below:INER CORPORATIONComparat

cash flow statement ( indirect method) as well as free cash flow are as follows

Answered: Prepare a statement of cash flows for…

Business

Accounting

Prepare a statement of cash flows for the year ended 2008, using the indirect method. b) Calculate the free cash flow and comment on it

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 32P

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