Exercise 17-7 Rojas Corporation\'s comparative balance sheets are presented belo

Question

Exercise 17-7 Rojas Corporation's comparative balance sheets are presented below ROJAS CORPORATION 2017 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings 016 $10,000 23,400 25,700 70,100 $15,000 21,300 20,400 70,100 (15,000) (10,900) Total $111,800 $118,300 Accounts payable Common stock Retained earnings $12,400 $27,600 73,400 17,300 $111,800$118,300 74,000 25,400 Total Additional information 1. Net income was $23,100. Dividends declared and paid were $15,000 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $5,000

Explanation / Answer

Statement of cash flows for the year ended December 31, 2017

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Particulars Amount Amount Net Income 23100 Cash flows from operating activities Depreciation expense 4100(15000-10900) Loss on Disposal of land 300(25700-20400-5000) Decrease in accounts receivable 2100(23400-21300) Decrease in accounts payable -15200(27600-12400) Net cash provided by operating activities -8700 Cash flows from Investing activities Sale of land 5000 Net cash from investing activities 5000 Cash flows from Financing activities Issuance of common stock 600(74000-73400) Payment of dividend -15000 Net cash from financing activities -14400 Net increase in cash 5000 Cash at the beginning of the year 10000 Cash at the end of the year 15000

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