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 2017.

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

Instructions

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

(b) Compute free cash flow.

Transcribed Image Text:

ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 14,300 $ 10,700 Accounts receivable 21,200 20,000 70,000 (15,000) 23,400 26,000 Land Buildings Accumulated depreciation-buildings 70,000 (10,000) Total $110,500 $120,100 Accounts payable Common stock $ 12,370 $ 31,100 75,000 23,130 69,000 20,000 Retained earnings Total $110,500 $120,100