Instructions

(a)statement of cash flows for 2017 using the indirect method.

(b) Compute free cash flow.

flows and complice free cask RODRIQUEZ CORPORATION flow. Comparative Balance Sheets (LO 2, 3) December 31 2017 2016 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 Statement of Cash Flows 2017 2016 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 2017