Rodriquez Corporation’s comparative balance sheets are as follows. 

Additional information:

1. Net income was $18,300. Dividends declared and paid were $16,400.

2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300.

3. No noncash investing and financing activities occurred during 2022.

4. Bonds were retired at their carrying value.

Instructions

a. Prepare a statement of cash flows for 2022 using the indirect method.

b. Compute free cash flow.

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Rodriquez Corporation Comparative Balance Sheets December 31 Cash Accounts receivable Investments Equipment Accumulated depreciation-equipment Total Accounts payable Bonds payable Common stock Retained earnings Total 2022 $ 15,200 25,200 20,000 60,000 (14,000) $106,400 $ 14,600 10,000 50,000 31,800 $100,400 2021 $ 17,700 22,300 16,000 70,000 (10,000) $116,000 $11,100 30,000 45,000 29,900 $116,000