Rodriquez Corporation’s comparative balance sheets are presented below.

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 2017.

Instructions

(a) Prepare a statement of cash flows for 2017 using the indirect method.

(b) Compute free cash flow.

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RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2017 2016 $ 15,200 25,200 20,000 60,000 (14,000) $ 17,700 22,300 16,000 70,000 (10,000) Cash Accounts receivable Investments Equipment Accumulated depreciation-equipment Total $106,400 $116,000