Rojas Corporation’s comparative balance sheets are presented below. 

Additional information:

1. Net income was $22,630. Dividends declared and paid were $19,500.

2. No noncash investing and financing activities occurred during 2022.

3. The land was sold for cash of $4,900.

Instructions

a. Prepare a statement of cash flows for 2022 using the indirect method.

b. Compute free cash flow.

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Cash Accounts receivable Land Rojas Corporation Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Total Accounts payable Common stock Retained earnings 2022 $ 14,300 21,200 20,000 70,000 (15,000) $110,500 $ 12,370 75,000 23,130 2021 $ 10,700 23,400 26,000 70,000 (10,000) $120,100 $ 31,100 69,000 20,000