Below Is a Condensed Version of the Comparative Balance Sheets

question 24

Essay

Below is a condensed version of the comparative balance sheets for Stiller Corporation for 2011 and 2012:
$\begin{array}{|l|r|r|}\hline & 2012 & 2011 \\\hline \text { Cash } & \$ 157,000 & \$ 78,000 \\\hline \text { Accounts Receivable } & 180,000 & 185,000 \\\hline \text { Investments } & 52,000 & 74,000 \\\hline \text { Equipment } & 298,000 & 240,000 \\\hline \begin{array}{l}\text { Less Accumulated } \\\text { depreciation }\end{array} & (106,000) & (89,000) \\\hline \text { Current liabilities } & 134,000 & 151,000 \\\hline \text { Common Stock } & 160,000 & 160,000 \\\hline \text { Retained Earnings } & 287,000 & 177,000\\\hline\end{array}$
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.
Required:
(a)Prepare a statement of cash flows for 2012 for Stiller Corporation.
(b)Calculate the company's free cash flow.

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Definitions:

Consumerism

The promotion of consumer interests and the emphasis on the acquisition of goods and services as a central aspect of society.

Culture Constraint

Limitations and boundaries on individual behavior and social practices imposed by cultural norms and values.

Rationalization

The process of making activities or tasks more efficient and systematic, often through the implementation of rules, regulations, and procedures.

McDonaldization

A term used to describe the process by which the principles of the fast-food industry, such as efficiency and uniformity, are coming to dominate other sectors of society.