Exercise 13-7

Rojas Corporations comparative balance sheets are presented below.

ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciationbuildings (15,300 ) (10,800 ) Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500 Total $111,000 $119,700

Additional information:

1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities occurred during 2017. 3. The land was sold for cash of $4,500.

Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)

ROJAS CORPORATION Statement of Cash Flows For the Month Ended December 31, 2017 For the Year Ended December 31, 2017 December 31, 2017 Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Depreciation Expense Decrease in Accounts Receivable Increase in Accounts Payable Gain on Disposal of Land Payment of Dividends Decrease in Accounts Payable Net Income Loss on Disposal of Land Increase in Accounts Receivable Sale of Land Issuance of Common Stock $ Adjustments to reconcile net income to Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Increase in Accounts Receivable Decrease in Accounts Payable Increase in Accounts Payable Sale of Land Issuance of Common Stock Payment of Dividends Loss on Disposal of Land Net Income Gain on Disposal of Land Depreciation Expense Decrease in Accounts Receivable $ Net Income Depreciation Expense Loss on Disposal of Land Increase in Accounts Receivable Decrease in Accounts Receivable Decrease in Accounts Payable Payment of Dividends Increase in Accounts Payable Sale of Land Issuance of Common Stock Gain on Disposal of Land Increase in Accounts Receivable Payment of Dividends Gain on Disposal of Land Net Income Depreciation Expense Issuance of Common Stock Loss on Disposal of Land Decrease in Accounts Receivable Decrease in Accounts Payable Increase in Accounts Payable Sale of Land Depreciation Expense Increase in Accounts Receivable Increase in Accounts Payable Decrease in Accounts Payable Sale of Land Net Income Issuance of Common Stock Loss on Disposal of Land Payment of Dividends Decrease in Accounts Receivable Gain on Disposal of Land Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Increase in Accounts Receivable Net Income Increase in Accounts Payable Sale of Land Issuance of Common Stock Gain on Disposal of Land Depreciation Expense Payment of Dividends Decrease in Accounts Payable Loss on Disposal of Land Decrease in Accounts Receivable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Increase in Accounts Receivable Decrease in Accounts Payable Depreciation Expense Decrease in Accounts Receivable Payment of Dividends Loss on Disposal of Land Increase in Accounts Payable Issuance of Common Stock Sale of Land Gain on Disposal of Land Net Income $ Increase in Accounts Payable Gain on Disposal of Land Increase in Accounts Receivable Decrease in Accounts Payable Sale of Land Loss on Disposal of Land Net Income Issuance of Common Stock Payment of Dividends Depreciation Expense Decrease in Accounts Receivable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash $

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Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Free cash flow $