The following is the balance sheet for Crown-well Inc. for the period ending December 2011:
Crown-well Inc.
Balance Sheet (2011)
Cash $ 24,000 Current Liabilities $ 30,000
Other current assets 51,000 Long-Term Notes payable 33,000
Total current assets 75,000 Bonds 40,000
Investments 40,000 Common Stock 150,000
Fixed Assets (Net) 125,000 Retained Earnings 49,000
Land 62,000
$ 302,000 $ 302,000
The following transactions occurred during 2012:
$20,000, sale on some of its investments
$12,000, additional land for expansion
$10,000, bonds payment
$20,000, issuance of common stock
$5,000, dividend payment to stockholders
$42,000, Net Income for 2012
$18,000, depreciation
$10,050, taxes
$10,000, Interest expense
$18,000, purchase of second piece of land, using $12,000 in bonds and $6,000 in long-term notes payable.
Required:
a) Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.
b) Compute the firmâs free cash flows for 2012. (Hint: In computing FCF, please consider changes in investments and changes in Land as separate items from the Net Fixed Asset in the balance sheet)
PLEASE SHOW ALL WORKINGS