Question

Exercise 17-7

Rojas Corporation’s comparative balance sheets are presented below.

ROJAS CORPORATION Comparative Balance Sheets December 31
		2017			2016
Cash		$15,100			$10,300
Accounts receivable		21,700			23,900
Land		20,200			26,300
Buildings		70,300			70,300
Accumulated depreciation—buildings		(14,600	)		(10,000	)
Total		$112,700			$120,800
Accounts payable		$12,700			$28,600
Common stock		74,400			73,300
Retained earnings		25,600			18,900
Total		$112,700			$120,800

Additional information:

1.		Net income was $23,000. Dividends declared and paid were $16,300.
2.		No noncash investing and financing activities occurred during 2017
3.		The land was sold for cash of $4,500.

Answer 1

ROJAS CORPORATION
Cash Flow Statement (Indirect Method)
Cash flows from operating activities
Net Income		$   23,000
Adjustments for:
Depreciation expenses	$      4,600		14600-10000
Loss on Sale of land	$      1,600		26300-20200-4500
Decrease in Accounts Receiveble	$      2,200		23900-21700
Decrease in Accounts Payable	$ (15,900)		12700-28600
		$   (7,500)
Cash Generated from Operations		$   15,500
Cash flows from investing activities
Proceeds from sale of Land	$      4,500
Net cash provided by investing activities		$      4,500
Cash flows from financing activities
Proceeds from issue of common stock	$      1,100		74400-73300
Dividends Paid	$ (16,300)
Net cash used in financing activities		$ (15,200)
Net increase in cash and cash equivalents		$      4,800
Cash and cash equivalents at beginning of period		$   10,300
Cash and cash equivalents at end of period		$   15,100

You can reach me over comment box if you have any doubts. Please rate this answer