Question

In: Accounting

Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...

Rodriquez Corporation’s comparative balance sheets are presented below:

RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31

2020

2019
Cash

$16,600

$17,700
Accounts receivable

25,400

22,500
Investments

20,150

15,850
Equipment

60,050

70,150
Accumulated depreciation—equipment

(14,150

)

(10,500

)
   Total

$108,050

$115,700
Accounts payable

$14,450

$11,050
Bonds payable

10,800

30,200
Common stock

50,000

44,800
Retained earnings

32,800

29,650
   Total

$108,050

$115,700


Additional information:

1. Net income was $18,750. Dividends declared and paid were $15,600.
2. Equipment which cost $10,100 and had accumulated depreciation of $1,900 was sold for $3,700.
3. No noncash investing and financing activities occurred during 2020.

1)Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)

2)Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Free cash flow

$

Solutions

Expert Solution

Statement of Cash Flows
For the Year Ended December 31, 2020
Cash Flows from Operating Activities:
Net income 18750
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense 5550
Loss on disposal of Equipment 4500
Increase in Accounts Receivable -2900
Increase in accounts payable 3400
10550
Net cash provided by operating activities 29300
Cash Flows from Investing Activities:
Sale of Equipment 3700
Purchase of investment -4300
Net Cash used by Investing Activities -600
Cash Flows from Financing Activities
Payment of Dividends -15600
Redemption of Bonds -19400
Issuance of Common Stock 5200
Net Cash Used by Financing Activities -29800
Net Decrease in Cash -1100
Cash at Beginning of Period 17700
Cash at End of Period 16600
2
Net cash provided by operating activities 29300
Less : Payment of Dividends -15600
Free cash flow 13700

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...
Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $16,700 $17,600 Accounts receivable 24,900 22,000 Investments 19,850 16,250 Equipment 59,950 69,950 Accumulated depreciation—equipment (14,050 ) (10,300 )    Total $107,350 $115,500 Accounts payable $14,650 $11,050 Bonds payable 10,500 30,000 Common stock 49,900 44,900 Retained earnings 32,300 29,550    Total $107,350 $115,500 Additional information: 1. Net income was $18,650. Dividends declared and paid were $15,900. 2. Equipment which cost $10,000 and had accumulated depreciation...
Rodriquez Corporation’s comparative balance sheets are presented below.
Rodriquez Corporation’s comparative balance sheets are presented below.     Additional information: 1. Net income was $18,300. Dividends declared and paid were $16,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300. 3. No noncash investing and financing activities occurred during 2017.   Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow.
Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020...
Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14,400 $10,000 Accounts receivable 20,800 23,000 Land 19,800 25,900 Buildings 70,300 70,300 Accumulated depreciation—buildings (14,700 ) (10,600 )    Total $110,600 $118,600 Accounts payable $12,200 $27,600 Common stock 75,600 71,000 Retained earnings 22,800 20,000    Total $110,600 $118,600 Additional information: 1. Net income was $22,600. Dividends declared and paid were $19,800. 2. No noncash investing and financing activities occurred during 2020. 3. The land...
7B Harman Corporation’s comparative balance sheets are presented below. HARMAN CORPORATION Comparative Balance Sheets December 31                     
7B Harman Corporation’s comparative balance sheets are presented below. HARMAN CORPORATION Comparative Balance Sheets December 31                               2017             2016 Cash                                          $ 27,200        $ 17,700 Accounts receivable                     24,200           22,300 Investments                                 20,000           16,000 Prepaid Expenses                       10,000           15,000 Equipment                                     60,000           70,000 Accumulated depreciation            (14,000)       (10,000) Total                                             $127,400     $131,000 Accounts payable                         $ 19,600       $ 11,100 Taxes Payable                                   6,000            1,000 Bonds payable                                14,000           30,000 Common stock                                55,000          60,000                                                             Retained earnings                           32,800           29,900 Total                                             $127,400       $131,000 Additional information: 1. Net income was $34,300. Dividends declared and paid were $31,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $5,300. 3. All other changes in noncurrent account balances had a direct...
Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016...
Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 4,100 $ 4,100 Accounts receivable (net) 20,900 23,200 Inventory 10,400 7,500 Land 19,900 26,000 Buildings 69,500 69,500 Accumulated depreciation—buildings (14,700 ) (10,400 )     Total $110,100 $119,900 Accounts payable $ 12,300 $ 31,600 Common stock 74,500 70,500 Retained earnings 23,300 17,800     Total $110,100 $119,900 Wiemers’s 2017 income statement included net sales of $109,000, cost of goods sold of $59,500, and net income of...
Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016...
Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 4,200 $ 3,200 Accounts receivable (net) 21,000 23,200 Inventory 10,000 6,600 Land 19,700 26,100 Buildings 69,700 69,700 Accumulated depreciation—buildings (14,700 ) (10,300 ) Total $109,900 $118,500 Accounts payable $ 12,400 $ 31,600 Common stock 76,000 71,000 Retained earnings 21,500 15,900 Total $109,900 $118,500 Wiemers’s 2017 income statement included net sales of $111,000, cost of goods sold of $60,400, and net income of...
Exercise 18-11 Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31...
Exercise 18-11 Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 4,600 $ 4,200 Accounts receivable (net) 20,700 23,800 Inventory 10,100 7,300 Land 20,000 26,000 Buildings 69,500 69,500 Accumulated depreciation—buildings (15,400 ) (11,000 )     Total $109,500 $119,800 Accounts payable $ 12,500 $ 31,300 Common stock 75,800 68,800 Retained earnings 21,200 19,700     Total $109,500 $119,800 Wiemers’s 2017 income statement included net sales of $108,000, cost of goods sold of $61,000, and net...
Exercise 18-11 Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31...
Exercise 18-11 Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 3,500 $ 4,100 Accounts receivable (net) 21,500 23,300 Inventory 10,400 7,400 Land 19,500 25,800 Buildings 70,200 70,200 Accumulated depreciation—buildings (15,400 ) (11,000 )     Total $109,700 $119,800 Accounts payable $ 12,700 $ 30,700 Common stock 75,400 70,300 Retained earnings 21,600 18,800     Total $109,700 $119,800 Wiemers’s 2017 income statement included net sales of $109,000, cost of goods sold of $59,200, and net...
Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020...
Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020 2019 Cash $ 17,000 $ 17,500 Accounts receivable 25,000 22,400 Investments 19,850 16,050 Equipment 60,050 69,750 Accumulated depreciation—equipment (13,750 ) (10,400 )    Total $108,150 $115,300 Accounts payable $ 14,750 $ 11,250 Bonds payable 10,400 30,000 Common stock 49,500 45,200 Retained earnings 33,500 28,850    Total $108,150 $115,300 Additional information: 1.Net income was $18,450. Dividends declared and paid were $13,800. 2.Equipment which cost $9,700 and had...
Exercise 13-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December...
Exercise 13-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,300 ) (10,800 )    Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500    Total $111,000 $119,700 Additional information: 1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT