90.2K

Verified Solution

Link Copied!

Northern Illinois Manufacturing prepared the balance sheet and income statement for this year. Now the company needs to prepare its statement of cash flows. The comparative balance sheets for Northern Illinois Manufacturing for this year and last year and the income statement for this year are presented below. (Note: Work in Process is a current asset and should be treated as any other current asset.) Additional information: 1. Norther Illinois Manufacturing sold a piece of company equipment for $30,000. The equipment had been used for six years. It had cost $100,000 when purchases and had a 10years life and a $10,000 salvage value. Straight-line depreciation was used. 2. Northern Illinois manufacturing purchased new equipment costing $200,000. 3. The company paid $100,000 in dividends. Northern Illinois Manufacturing Income Statement For the year ending December 31 Northern Illinois Manufacturing Income Statement For the year ending December 31 Northern Illinois Manufacturing Balance Sheet December 31 Property,plant,andequipmentFurnishingsEquipmentBuildingsLandAccumulateddepreciationTotalproperty,plant,andequipmentTotalAssets40,416900,200450,000300,000(503,704)1,186,912$3,428,66840,416800,200450,000300,000(485,204)1,105,412$2,444,868 Liabilities and Stockholders' Equity Current liabilities Instructions: This assignment must be completed in an Excel spreadsheet and include the following: a. Prepare a statement of cash flows using the indirect method for this year. b. Determine free cash flow

Answer & Explanation Solved by verified expert

See Answer