Martinez Corporation engaged in the following cash transactions during 2014. Sale of land and building $ 191,000

Question 16

Martinez Corporation engaged in the following cash transactions during 2014.

Sale of land and building $ 191,000

Purchase of treasury stock $ 40,000

Purchase of land $ 37,000

Payment of cash dividend $ 95,000

Purchase of equipment $ 53,000

Issuance of common stock $ 147,000

Retirement of bonds $ 100,000

Determine Martinez's freecash flow, assuming that itreported net cash provided by operating activities of

$400,000.00

* Question17

A comparative balance sheet for Shabbona Corporation is presented below.

12/31/2015

Assets 2014 2013

Cash $73,000 $22,000

Accounts receivable 82,000 66,000

Inventory 180,000 189,000

Land 71,000 110,000

Equipment 260,000 200,000

Accumulated Depreciation-Equipment -69,000 -42,000

Total $597,000 $545,000

Liabilities and Stockholders' Equity

Accounts payable $34,000 $47,000

Bonds payable 150,000 200,000

Common stock ($1par) 214,000 164,000

Retained earnings 199,000 134,000

Total $597,000 $545,000

Additional information:

1. Netincomefor 2014 was $125,000.

2. Cash dividends of $60,000 were declared and paid.

3. Bonds payable amounting to $50,000 were retired through issuance of common stock.

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

Question 18

Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. (Use the tables below.)

To what amount will the investment grow in 3 years? To what amount would the investment grow

in 3 years if the fund earns 8% annual interestcompounded semiannually?(Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.)

Question 19

Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8 years, with the first withdrawal to take place 5 years from today. (Use the tables below.)

If the fund earns 8% interest, how much must Amy invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.)

Question 20 Compute the amount Alan would withdraw assuming the investment earns simple interest. (Round answers to O decimal places, e.g. 458,581.) Total withdrawn $ $32,800 (Use the tabie beiow.) WORKING $12,800 $20,000 $32,800 Compute the amount Alan would withdraw assuming the investment earns interest compounded annually. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)
Morlan Corporation is preparing its December 31, 2014, financial statements . Two events that occurred between December 31, 2014, and March 10, 2015, when the statements were issued, are described below.
1. A liability, estimated at $160,000 at December 31, 2014, was settled on February 26, 2015, at 170,000
2. A flood loss of $80,000 occurred on March 1, 2015.

What effect do these subsequent events have on 2014 net income
Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $144,000, 000 and $99,000,000, respectively. Short-term interest rates are expected to average 10% . If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year . Compute its expected cost savings for the coming year. At December 31, 2014, Grinkov Corporation had the following account balances. Installment Accounts Receivable, 2013 $65,000 Installment Accounts Receivable, 2014 110,000 Deferred Gross Profit, 2013 23,400 Deferred Gross Profit, 2014 41,800 Most of Grinkov's sales are made on a 2-year installment basis. Indicate how these accounts would be reported in Grinkov's December 31, 2014, balance sheet. The 2013 accounts are collectible in 2015, and the 2014 accounts are collectible in 2016