Question

Presented below are the financial statements or Windsor company. Windsor Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 59,500 Accounts receivable 34,000 Inventory 47,600 Property, plant, and equipment 102,000 Accumulated depreciation (54,400) Total $188,700 2021 $ 34,000 23,800 34,000 132,600 (40,800 ) $183,600 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 32,300 11,900 28,900 30,500 85,000 $188,700 $25,500 13,600 56,100 23,800 64,600 $183,500 $411,400 297,500 113,900 Windsor Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $30,500 Administrative expenses 10,200 Income from operations Interest expense Income before income taxes Income tax expense Net income 40,800 73,100 5,100 68,000 13,600 $ 54,400 Additional data: 1. Depreciation expense was $29,750. 2. Dividends declared and paid were $34,000. 3. During the year equipment was sold for $14,450 cash. This equipment cost $30,600 originally and had accumulated depreciation of $16,150 at the time of sale.

Answer 1

Cash Flows from Operating Activities:
Net income		54400
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	29750
Increase in Accounts Receivable	-10200
Increase in inventory	-13600
Increase in accounts payable	6800
Decrease in Income taxes payable	-1700
		11050
Net cash provided by operating activities		65450
Net cash provided by operating activities	65450
Less: Cash Dividends paid	-34000
Free cash flow	31450