Rojas Corporations's Comparative balance sheets are presented below
Rojas Corporation
Comparative Balance Sheets
December 31
2017 2016
Cash $14,300 $10,700
Accounts receivable 21,200 23,400
Land 20,000 26,000
Buildings 70,000 70,000
Accumulated depreciation-buildings (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $12,370 $ 31,100
Common Stock 75,000 69,000
Retained Earnings 23,130 20,000
Total $110,500 $120,100
Additional Information
- Net income was $22,630. Dividends declared and paid were $19,500
- No non cash Investing and financing activities occurred during 2017
- The land was sold for cash of $4,900
Instructions
(a) Prepare a statement of cash flows for 2017 using the indirect method
(b) Compute free cash flow.