Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do u solve this Instructions Prepare a statement of cash flows for 2022 using the indirect method. Prepare statement of cash flows-indirect method and

How do u solve this
image text in transcribed
image text in transcribed
Instructions Prepare a statement of cash flows for 2022 using the indirect method. Prepare statement of cash flows-indirect method and compute free cash flow. E17.10 (LO 2, 3), AP Rodriquez Corporation's comparative balance sheets are as follows. Rodriquez Corporation Comparative Balance Sheets December 31 2022 2021 Cash $ 15,200 $ 17,700 Accounts receivable 25,200 22,300 Investments 20,000 16,000 Equipment 60,000 70,000 Accumulated depreciation--equipment (14,000) (10,000) Total $106,400 $116,000 Accounts payable $ 14,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 50,000 45,000 Retained earnings 31,800 29,900 Total $106,400 $116,000 Investments 20,000 16,000 Equipment 60,000 70,000 Accumulated depreciation-equipment (14,000) (10,000) Total $106,400 $116,000 Accounts payable $ 14,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 50,000 45,000 Retained earnings 31,800 29,900 Total $106,400 $116,000 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. Compute net cash provided by operating activities-direct method. noonmhor 91 2022. Its

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

14th Edition

0324374178, 978-0324374179

Students also viewed these Accounting questions