Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 17-08 (Part Level Submission) Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14,600 $
Exercise 17-08 (Part Level Submission) Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14,600 $ 10,500 Accounts receivable 21,100 23,500 Land 19,900 26,100 Buildings 69,800 69,800 Accumulated depreciation-buildings (15,200) (10,800) Total $110,200 $119,100 Accounts payable Common stock Retained earnings Total $11,900 75,100 23,200 $110,200 $28,500 71,000 19,600 $119,100 Additional information: 1. Net Income was $22,600. Dividends declared and paid were $19,000. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold for cash of $4,500. Exercise 17-08 (Part Level Submission) Prepare a statement of cash flows for 2020 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 Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 22,600 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 4,400 Loss on Disposal of Plant Assets 1,700 Decrease in Accounts Receivable 2,400 Decrease in Accounts Payable (16,600) (8,100) Net Cash Provided by Operating Activities 14,500 Cash Flows from Investing Activities Sale of Land 4,500 Net Cash Provided by Investing Activities 4,500 Cash Flows from Financing Activities Payment of Dividends Issuance of Common Stock (19,000) 4,100 Net Cash Used by Financing Activities (14,900) Net Increase in Cash 4,100 Cash at Beginning of Period 10,500 Cash at End of Period 14,600 (b) x Your answer is incorrect. Try again. 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 10,000 Click if you would like to Show Work for this question: Open Show Work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started