Presented below is a condensed version of the preparative balance sheets for Sondergaard Corporation

Presented below is a condensed version of the preparative balance sheets for Sondergaard Corporation for the last two years at:

 

                 December 31.           2010 .                      2009

 

Cash                                     $157,000                    $ 78,000

Accounts receivable                 180,000                     185,000

Investments                              52,000                       74,000

Equipment                              298,000                     240,000

Less: Accumulated depreciation (106,000)                 (89,000)

Current liabilities                     134,000                     151,000

Capital stock                          160,000                     160,000

Retained earnings                   287,000                     177,000

 

Additional information:

 

Investments were sold at a loss (not extraordinary) of$7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.

 

Instructions

 

(a) Prepare a statement of cash. Flows for 2010 for Sondergaard Corporation.

 

(b) Determine Sondergaard Corporation’s free cash flow.