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).)

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 2017 2016 Cash $ 14,500 $ 10,400 Accounts receivable 21,300 23,900 Land 20,300 25,700 Buildings 69,800 69,800 Accumulated depreciation buildings (15,000 ) (10,200 ) Total $140,900 $140,000 $ 12,500 75,400 Accounts payable $ 28,300 Common stock 71,500 Retained earnings 23,000 19,800 Total $110,900 $119,600 ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 14,500 $ 10,400 Accounts receivable 21,300 23,900 Land 20,300 25,700 Buildings 69,800 69,800 Accumulated depreciation buildings (15,000 ) (10,200 ) Total $140,900 $140,000 $ 12,500 75,400 Accounts payable $ 28,300 Common stock 71,500 Retained earnings 23,000 19,800 Total $110,900 $119,600