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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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