Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 Cash Accounts receivable Land Buildings 2017 $14,300 2016 $10,700 21,200 23,400 20,000 26,000 70,000 70,000 Accumulated depreciation -- buildings (15,000) (10,000) Total Accounts payable Common stock Retained earnings Total $110,500 $120,100 $12,370 $31,100 75,000 69,000 23,130 20,000 $110,500 $120,100 Additional information: Net income was $22,630. Dividends declared and paid were $19,500. No noncash investing and financing activities occurred during 2017. The land was sold for cash of $4,900. Instructions: Prepare a statement of cash flows for 2017 using the indirect method. Compute free cash flow.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Rojas Corporation's comparative balance sheets are presented below.
ROJAS CORPORATION Comparative Balance Sheets December 31
Cash
Accounts receivable
Land
Buildings
2017
$14,300
2016
$10,700
21,200 23,400
20,000 26,000
70,000
70,000
Accumulated depreciation -- buildings (15,000) (10,000)
Total
Accounts payable
Common stock
Retained earnings
Total
$110,500 $120,100
$12,370 $31,100
75,000 69,000
23,130 20,000
$110,500 $120,100
Additional information:
Net income was $22,630. Dividends declared and paid were $19,500.
No noncash investing and financing activities occurred during 2017.
The land was sold for cash of $4,900.
Instructions:
Prepare a statement of cash flows for 2017 using the indirect method.
Compute free cash flow.
Transcribed Image Text:Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 Cash Accounts receivable Land Buildings 2017 $14,300 2016 $10,700 21,200 23,400 20,000 26,000 70,000 70,000 Accumulated depreciation -- buildings (15,000) (10,000) Total Accounts payable Common stock Retained earnings Total $110,500 $120,100 $12,370 $31,100 75,000 69,000 23,130 20,000 $110,500 $120,100 Additional information: Net income was $22,630. Dividends declared and paid were $19,500. No noncash investing and financing activities occurred during 2017. The land was sold for cash of $4,900. Instructions: Prepare a statement of cash flows for 2017 using the indirect method. Compute free cash flow.
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