Chapter 13, Problem 13.7E

Rojas Corporation’s comparative balance sheets are presented below.

ROJAS CORPORATION

Comparative Balance Sheets

December 31

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

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.