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ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 $14,500 $10,4

ID: 2422416 • Letter: R

Question

ROJAS CORPORATION
Comparative Balance Sheets
December 31

2017

2016

$14,500

$10,400

21,300

23,900

20,300

25,700

69,800

69,800

(15,000

)

(10,200

)

$110,900

$119,600

$12,500

$28,300

75,400

71,500

23,000

19,800

$110,900

$119,600

Adjustments to reconcile net income to

Rojas Corporation’s comparative balance sheets are presented below.

ROJAS CORPORATION
Comparative Balance Sheets
December 31

2017

2016

Cash

$14,500

$10,400

Accounts receivable

21,300

23,900

Land

20,300

25,700

Buildings

69,800

69,800

Accumulated depreciation—buildings

(15,000

)

(10,200

)

   Total

$110,900

$119,600

Accounts payable

$12,500

$28,300

Common stock

75,400

71,500

Retained earnings

23,000

19,800

   Total

$110,900

$119,600


Additional information:
1. Net income was $22,300. Dividends declared and paid were $19,100. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,600.

Explanation / Answer

CAsh Flow - Indirect Method

Net Income 22300 Add Decrease in Accounts Receivable 2600 less Decrease in Accounts PAyable 15800 Net Cash Flow from Operating activities 9100 Cash flow from Investing Activities Sale of LAnd 4600 CAsh Flow from Financing Activities Dividend Declared and paid (19100) Net Decrease in cash (9100+4600 -19100) = (5400) (5400) cash JAnuary 1 10400 CAsh dec 31 5000