Rodriquez Corporation's comparative balance sheets are as follows.

Additional information:

1. Net income was \(\$ 18,300\). Dividends declared and paid were \(\$ 16,400\).

2. Equipment which cost \(\$ 10,000\) and had accumulated depreciation of \(\$ 1,200\) was sold for \(\$ 3,300\).

3. No noncash investing and financing activities occurred during 2025.

4. Bonds were retired at their carrying value.

Instructions

a. Prepare a statement of cash flows for 2025 using the indirect method.

b. Compute free cash flow.

Transcribed Image Text:

Cash Accounts receivable Investments Equipment Accumulated depreciation equipment Total Accounts payable Bonds payable Rodriquez Corporation Comparative Balance Sheets December 31 Common stock Retained earnings Total 2025 $ 15,200 25,200 20,000 60,000 (14,000) $106,400 $ 14,600 10,000 50,000 31,800 $106,400 2024 $ 17,700 22,300 16,000 70,000 (10,000) $116,000 $ 11,100 30,000 45,000 29,900 $116,000