The following is a condensed version of the comparative balance sheets for Pesty Corporation for the last two years at December 31.
2025 2024
Cash $177,000 $ 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Accumulated depreciation-equipment (106,000) (89,000)
Current liabilities 134,000 151,000
Common stock 160,000 160,000
Retained earnings 307,000 177,000
Additional information:
Investments were sold at a loss of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.
Instructions
a) Prepare a statement of cash flows for 2025 for Pesty Corporation.
b) Determine Pesty Corporation's free cash flow.