# Accounting hw help Meera Corporation’s comparative balance sheets are presented below.?

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I get the loss of sale land wrong. I can’t seem to get the right number. I’ve put down \$6000 and \$5000 but it’s wrong.

Loss on Sale of Land ???

Cash Flow From Investing Activities

Sale of Land \$5000

??? <— don’t know what goes here

Payment of Dividends \$-1950

Issuance of Common stock 3000

???<–IDK what goes here -1650

Net Increase in Cash ???

Cash at the Beginning of the Period ???

Cash at the End of Period 14700

I can’t figure out how to calculate the free cash flow either.

I know the equation is : Free Cash Flow= Cash provided by operating activities – Capital Expenditures – Cash Dividends

I don’t need someone to DO my hw for me. But I need someone to help me on how to get the stuff that’s in question marks. The rest I have right.

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Meera Corporation’s comparative balance sheets are presented below.

MEERA CORPORATION

Comparative Balance Sheets

December 31

2014 2013

Cash

\$14,700 \$10,700

Accounts receivable

20,800 23,400

Land

20,000 26,000

Buildings

70,000 70,000

Accumulated depreciation—buildings

(15,000) (10,000)

Total

\$110,500 \$120,100

Accounts payable

\$12,370 \$28,100

Common stock

75,000 72,000

Retained earnings

23,130 20,000

Total

\$110,500 \$120,100

1. Net income was \$22,630. Dividends declared and paid were \$19,500.

2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for \$5,000.

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(a) Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000).)

• The land was sold for \$5,000. But the land account decreased from \$26,000 to \$20,000 (\$6,000). So there must have been a \$1,000 loss on the land. This is added in the operating activities section of the statement of cash flows.

Statement of Cash Flows

Operating activities

\$22,630 net income

+ 5,000 depreciation

+ 2,600 decrease in accounts receivable

– 15,730 decrease in accounts payable

+ 1,000 loss on sale of land

= \$15,500 cash flow from operating activities

Investing activities

\$5,000 sale of land

= \$5,000 cash flow from investing activities

Financing activities

\$3,000 cash from issuance of common stock

– 19,500 cash dividends paid

= -\$16,500 cash used by financing activities

15,500 + 5,000 – 16,500 = \$4,000 total cash flow

+ 10,700 beginning cash balance

= \$14,700 ending cash balance

Using your free cash flow formula

15,500 – 0 – 19,500 = -\$4,000