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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
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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
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