Exercise 17-7 Rojas Corporation\'s comparative balance sheets are presented belo

Question

Exercise 17-7 Rojas Corporation's comparative balance sheets are presented belovw ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings $14,600 $10,200 20,700 20,100 69,500 (15,000) (10,900) 23,100 25,700 69,500 Total $109,900$117,600 Accounts payable Common stock Retained earnings $12,800 $27,600 71,100 18,900 $109,900 $117,600 74,200 22,900 Total Additional information: 1. Net income was $22,600. Dividends declared and paid were $18,600. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,700.

Explanation / Answer

Cash flow Statement: Cashflows from Operating activities: Net income for the year 22600 Adjustment required fro reconciliation: Loss on sale of land (5600-4700) 900 Depreciation (15000-10900) 4100 Decrease in Accounts receivable 2400 Decrease in Accounts payable -14800 Net cash provided from Operating activities 15200 Cash flows from Investing activities: Sale of land 4700 Net cash provided from investing activities 4700 Cashflows from financing activities: Dividend paid -18600 Issue of common stock 3100 Net cash used in financing activities -15500 Net increase in cash 4400 Beginning balance of cash 10200 Ending balance of cash 14600

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