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E17-7 Scully Corporation’s comparative balance sheets are presented below.

Price: $1.99


E17-7 
Scully Corporation’s comparative balance sheets are presented below.

Scully Corporation
Comparative Balance Sheets
31-Dec
  2010 2009
Cash   14,300  10,700
Accounts receivable   21,200  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  31,100
Common stock   75,000  69,000
Retained earnings   23,130  20,000
 Total   110,500  120,100

Additional information:
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 $4,900.

Instructions
(a) Prepare a statement of cash flows for 2010 using the indirect method.
(b) Compute free cash flow.

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