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 2020.
3. The land was sold for cash of $4,900.

Instructions
a. Prepare a statement of cash flows for 2020 using the indirect method.
b. Compute free cash flow.

Transcribed Image Text:

Rojas Corporation Comparative Balance Sheets December 31 2020 2019 $ 14,300 $ 10,700 Cash Accounts receivable 21,200 20,000 23,400 26,000 Land Buildings Accumulated depreciation-buildings 70,000 70,000 (15,000) (10,000) Total $110,500 $120,100 $ 12,370 $ 31,100 Accounts payable Common stock 75,000 23,130 69,000 Retained earnings 20,000 $110,500 $120,100 Total