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RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2017 2016 $ 16,700

ID: 2438008 • Letter: R

Question

RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31

2017

2016

$ 16,700

$ 17,300

25,100

22,300

20,050

15,750

60,250

69,850

(13,750

)

(10,300

)

$108,350

$114,900

$ 14,650

$ 11,050

10,800

30,100

49,800

44,500

33,100

29,250

$108,350

$114,900


Additional information:

RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31

2017

2016

Cash

$ 16,700

$ 17,300

Accounts receivable

25,100

22,300

Investments

20,050

15,750

Equipment

60,250

69,850

Accumulated depreciation—equipment

(13,750

)

(10,300

)

   Total

$108,350

$114,900

Accounts payable

$ 14,650

$ 11,050

Bonds payable

10,800

30,100

Common stock

49,800

44,500

Retained earnings

33,100

29,250

   Total

$108,350

$114,900

Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 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 Purchase of Investments Sale of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Retirement of Bonds Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period

Explanation / Answer

Solution:

RODRIQUEZ CORPORATION Statement of Cash Flows For year ended December 31, 2017 Particulars Details Amount Cash Flow from Operating Activities: Net Income $18,450.00 Adjustments to reconcile net income to net cash provided by operations: Depreciation Expense ($13,750 - $10,300 + $1,700) $5,150.00 Loss on sale of equipment ($9,600 - $1,700 - $3,600) $4,300.00 Increase in accounts receivables ($25,100 - $22,300) -$2,800.00 Increase in accounts payable ($14,650 - $11,050) $3,600.00 Net Cash provided by operating activities $28,700.00 Cash Flow from Investing Activities: Proceed from sale of equipment $3,600.00 Purchase of investments ($20,050 - $15,750) -$4,300.00 Net Cash Provided by Investing activities -$700.00 Cash Flow from Financing Activities: Proceed from issue of common stock ($49,800 - $44,500) $5,300.00 Dividend Paid -$14,600.00 Cash paid for bond repayment ($30,100 - $10,800) -$19,300.00 Net Cash Provided by financing activities -$28,600.00 Net Increase / (Decrease) in Cash -$600.00 Cash balance at beginning of year $17,300.00 Cash balance at end of year $16,700.00