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While the dividend information was provided, pretend that it wasn't given, but still needed to be included in the statement. How would you derive it?
While the dividend information was provided, pretend that it wasn't given, but still needed to be included in the statement. How would you derive it? Show the steps to derive and your explanation.
Prepare statement of cash flows and compute free cash flow. E17.10 (LO 2, 3) Financial Statement Rodriquez Corporation's comparative balance sheets are presented below. Rodriquez Corporation Comparative Balance Sheets December 31 2020 Cash $ 15,200 Accounts receivable 25,200 Investments 20,000 Equipment 60,000 Accumulated depreciationequipment (14,000) Total $106,400 Accounts payable $ 14,600 Bonds payable 10,000 Common stock 50,000 Retained earnings 31,800 Total $106,400 2019 $ 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. No noncash investing and financing activities occurred during 2020. Exercises 17-49 Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Compute free cash flowStep by Step Solution
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