Rojas Corporation’s comparative balance sheets are presented below. Rojas Corpor
ID: 2593481 • Letter: R
Question
Rojas Corporation’s comparative balance sheets are presented below.
Rojas Corporation
Comparative Balance Sheets
December 31
2019
2018
$ 14,300
$ 10,700
21,200
23,400
20,000
26,000
70,000
70,000
(15,000
)
(10,000
)
$110,500
$120,100
$ 12,370
$ 31,100
75,000
69,000
23,130
20,000
$110,500
$120,100
Additional information:
Prepare a statement of cash flows for 2019 using the indirect method.
Compute free cash flow.
Rojas Corporation
Comparative Balance Sheets
December 31
2019
2018
Cash$ 14,300
$ 10,700
Accounts receivable21,200
23,400
Land20,000
26,000
Buildings70,000
70,000
Accumulated depreciation—buildings(15,000
)
(10,000
)
Total$110,500
$120,100
Accounts payable$ 12,370
$ 31,100
Common stock75,000
69,000
Retained earnings23,130
20,000
Total$110,500
$120,100
Explanation / Answer
Cash Flow Statement
Net income ........................................22630
Less; Loss on sale of land..................(100)
Less; Dividend paid...........................(19500)
Add; Earning during the year................3130
Add; Depreciation...................................5000
Add; Decrease in account recevables......2200
Less; Decrease in account payable.......(18730)
Add; Increase in stock.............................(6000)
Cash outflow ....................................(11370)
NOTE: no cash and financing activities occcured during the year therefore sale of land and other investing and financing activities are not concerned
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.