Rojas Corporation?s comparative balance sheets are presented below.

Additional information:

1. Net income was $22,500. Dividends declared and paid were $18,800.

2. No noncash investing and financing activities occurred during 2017.

3. The land was sold for cash of $4,500.

(a) Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)

(b) Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Transcribed Image Text:

ROJAS CORPORATION Comparative Balance Sheets December 31 Cash Accounts receivable Land Buildings Accumulated depreciation- buildings Total Accounts payable Common stock Retained earnings Total 2017 $ 14,600 21,600 20,400 70,100 $111,700 $ 12,700 75,200 23,800 2016 (15,000 ) (10,500 ) $111,700 $ 10,600 23,400 26,000 70,100 $119,600 $ 28,300 71,200 20,100 $119,600 ROJAS CORPORATION Comparative Balance Sheets December 31 Cash Accounts receivable Land Buildings Accumulated depreciation- buildings Total Accounts payable Common stock Retained earnings Total 2017 $ 14,600 21,600 20,400 70,100 $111,700 $ 12,700 75,200 23,800 2016 (15,000 ) (10,500 ) $111,700 $ 10,600 23,400 26,000 70,100 $119,600 $ 28,300 71,200 20,100 $119,600

Answer rating: 100% (QA)

a ROJAS CORPORATION Statement of Cash Flows For the Year Ended December 31 2017 Cas... View the full answer