Question
In: Accounting
Rojas Corporation’s comparative balance sheets are presented below.
Rojas Corporation’s comparative balance sheets are presented below.
Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
2. No noncash investing and financing activities occurred during 2017.
3. The land was sold for cash of $4,900.
Instructions
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Compute free cash flow.
Solutions
Expert Solution
Calculate the cash flow from operating activities under the indirect method as shown below:
Therefore, the cash flow from operating activities is $12,200.
Explanation:
Cash flow from operating activities is calculated by adding the non-cash expenses (depreciation & loss on sale of land), decrease in current assets (accounts receivable) and reducing the decrease in the current liabilities (accounts payable).
Prepare the cash flow statement as shown below:
The net cash flow during the period is $3,600.
Explanation
The sum of cash flow from all the three activities i.e. cash flow from operating, investing and financing activities results in the increase or decrease of the cash during the period. Therefore, there is an increase in the cash during the period by the sum of cash flow from all three activities.
The net cash flow during the period is $3,600.
Therefore, the cash flow from operating activities is $12,200.
Junaid answered 2 years agoRelated Solutions
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...
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...
Exercise 17-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December...
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....
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.
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...
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...
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...
Presented below is a condensed version of comparative balance sheets partial for Orozco Corporation’s for the...
Presented below is a condensed version of comparative balance
sheets partial for Orozco Corporation’s for the last two years at
December 31.
Obermeyer Corporation issued the following statement of cash
flows for 2017.
OBERMEYER CORPORATION
Statement of Cash Flows—Indirect Method
For the Year Ended December 31, 2017
Cash flows from operating activities
Net income
$59,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation expense
9,100
Loss on disposal of equipment
9,500
Increase in inventory
(5,000)...
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...
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