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Rodriquez Corporation's comparative balance sheets are presented below. Prepare a Statement of Cash Flows for 2014 using the indirect method. Analysis RODRIQUEZ CORPORATION Comparative Balance
Rodriquez Corporation's comparative balance sheets are presented below. Prepare a Statement of Cash Flows for 2014 using the indirect method. Analysis RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2014 Cash $ 15,200 Accounts receivable 25,200 Investments 20,000 Equipment 60,000 Accumulated depreciation equipment (14,000) Total $106,400 Accounts payable $ 14,600 Bonds payable 10,000 Common stock 50,000 Retained earnings 31,800 Total $106,400 2013 $ 17,700 22,300 16,000 70,000 (10,000) $116,000 $ 11,100 30,000 45,000 29.900 $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. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. RODRIQUEZ CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Net income Adjustments to reconcile net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable Net cash provided by operating activities Cash flows from investing activities Sale of equipment Purchase of investments Net cash used by investing activities Cash flows from financing activities Issuance of common stock Payment of dividends Retirement of bonds Net cash used by financing activities Net increase in cash Cash at beginning of period Cash at end of period
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