Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

LARK CORPORATION Balance Sheet December 31 Assets 2010 Cash $28,880 Receivables

ID: 2441912 • Letter: L

Question

LARK CORPORATION
Balance Sheet

December 31
Assets 2010
Cash $28,880
Receivables (net) 79,321
Other current assets 89,321
Long-term investments 75,000
Plant and equipment (net)

519,321



Total assets

$791,843




Liabilities and Stockholders' Equity
Current liabilities $78,880
Long-term debt 89,321
Common stock 339,321
Retained earnings

284,321



Total liabilities and stockholders' equity

$791,843





LARK CORPORATION
Income Statement

For the Years Ended December 31
2010
Sales $754,072
Cost of goods sold 440,000
Operating expenses (including income taxes)

240,000



Net income

$74,072



Additional information:

Cash from operating activities $90,830
Cash used for capital expenditures $48,830
Dividends paid $23,830
Average number of shares outstanding 33,000

Explanation / Answer

The formula for calculating Free cash flows is Free cash flows = Net cash flow from operations - Capital expenditures - Dividends From the given information, Net cash flow from Operations = $90,830 Capital expenditure = $48,830 Dividends = $23,830 Substituting the values in the above formula, we get Free cash flows = $90,830 - $48,830 - $23,830 = $18,170 Therefore, the value of free cash flows is $18,170.