ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 $14,500 $10,4
ID: 2422416 • Letter: R
Question
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2017
2016
$14,500
$10,400
21,300
23,900
20,300
25,700
69,800
69,800
(15,000
)
(10,200
)
$110,900
$119,600
$12,500
$28,300
75,400
71,500
23,000
19,800
$110,900
$119,600
Adjustments to reconcile net income to
Rojas Corporation’s comparative balance sheets are presented below.ROJAS CORPORATION
Comparative Balance Sheets
December 31
2017
2016
Cash$14,500
$10,400
Accounts receivable21,300
23,900
Land20,300
25,700
Buildings69,800
69,800
Accumulated depreciation—buildings(15,000
)
(10,200
)
Total$110,900
$119,600
Accounts payable$12,500
$28,300
Common stock75,400
71,500
Retained earnings23,000
19,800
Total$110,900
$119,600
Additional information:
1. Net income was $22,300. Dividends declared and paid were $19,100. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,600.
Explanation / Answer
CAsh Flow - Indirect Method
Net Income 22300 Add Decrease in Accounts Receivable 2600 less Decrease in Accounts PAyable 15800 Net Cash Flow from Operating activities 9100 Cash flow from Investing Activities Sale of LAnd 4600 CAsh Flow from Financing Activities Dividend Declared and paid (19100) Net Decrease in cash (9100+4600 -19100) = (5400) (5400) cash JAnuary 1 10400 CAsh dec 31 5000Related Questions
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