Exercise 13-7 (Part Level Submission) Rojas Corporation\'s comparative balance s

Question

Exercise 13-7 (Part Level Submission) Rojas Corporation's comparative balance sheets are presented below ROJAS CORPORATION Comparative Balance Sheets 2015 2014 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings $13,810 21,360 20,150 69,910 $10,930 23,440 26,100 69,910 (15,110) (10,630) Total $110,120 $119,750 Accounts payable Common stock Retained earnings $12,750 74,130 23,240 $110,120 $31,480 69,160 19,110 $119,750 Total Additional information: 1. Net income was $22,577. Dividends declared and paid were $18,447 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,760

Explanation / Answer

Solution:

Cash flow from Operating Activities: Net Profit before tax and extra ordinary items 22577 Add: Depreciation 4480 Add: Loss on sale of Land 1190 Opening profit before working capital changes 28247 Add: decrease in current assets 2080 Less: Decrease in current liabilities 18730 Net cash from operating activities 11597 Cash flow from Investing Activities Proceeds from sale of land 4760 Cash flow from Financing activities Incease in Common stock 4970 Dividend paid (18447) (13477) Net Increase in Cash 2880 Opening Cash Balance 10930 Closing Cash Balance 13810

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