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Use the indirect method to create a SCF and calculate FCF
Net Income= 326
The company sold equipment that had an original cost of $64 and accumulated depreciation of $33
The company did not issue any new bonds during the year.
| Ending Balance | Beginning Balance |
| Assets | | | | |
| Current Assets: | | | | |
| Cash & Cash Equivalents | $ | 65 | $ | 133 |
| Accounts Receivable | | 900 | | 822 |
| Inventory | | 780 | | 714 |
| Total Current Assets | | 1,745 | | 1,669 |
| Property, Plant & Equipment | | 1,765 | | 1,718 |
| Less Accumulated Depreciation | | 926 | | 729 |
| Net PPE | | 839 | | 989 |
| Total Assets | | 2,584 | | 2,658 |
| | | | |
| Liabilities & Equity | | | | |
| Current Liabilities: | | | | |
| Accounts Payable | | 312 | | 186 |
| Accrued Liabilities | | 206 | | 144 |
| Income Tax Payable | | 129 | | 98 |
| Total Current Liabilities | | 647 | | 428 |
| Bonds Payable | | 545 | | 860 |
| Total Liabilities | | 1,192 | | 1,288 |
| | | | |
| Common Stock | | 275 | | 275 |
| Retained Earnings | | 1,117 | | 1,095 |
| Total Equity | | 1,392 | | 1,370 |
| Total Liabilities & Equity | | 2,584 | | 2,658 |
Answer & Explanation
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