Exercise 13-9 (Part Level Submission) Rodriquez Corporation\'s comparative balan

ID: 2475881 • Letter: E

Question

Exercise 13-9 (Part Level Submission) Rodriquez Corporation's comparative balance sheets are presented below RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash Accounts receivable Investments Equipment Accumulated depreciation-equipment $ 17,500 22,300 15,850 70,050 $16,800 25,000 19,850 60,050 (14,150) $107,550 (10,500) Total $115,200 Accounts payable Bonds payable Common stock Retained earnings $11,150 30,100 45,400 28,550 $107,550 $115,200 $14,550 10,500 49,800 32,700 Total Additional information: 1. Net income was $18,550. Dividends declared and paid were $14,400 2. Equipment which cost $10,000 and had accumulated depreciation of $2,000 was sold for $3,700 3. No noncash investing and financing activities occurred during 2017. (a) Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow

Explanation / Answer

Rodriquez

Statement of Cash Flows

For the Year Ending December 31, 2017

2017

Cash Flows from Operating Activities

Net Income

$18,550

Add Expenses Not Requiring Cash:

Depreciation

1650

Loss on Sale of Equipment

4300

Other Adjustments:

Subtract increase in Accounts Receivable

-2700

Add Increase in Accounts Payable

3400

Net Cash from Operating Activities

$25,200

Cash Flows from Investing Activities

Sale of Fixed Assets

3700

Net Cash Used for Investing Activities

$3,700

Cash Flows from Financing Activities

Payment of Bonds

-$19,600

Dividend Paid

-14400

Issue of Common Stock

4400

Net Cash from Financing Activities

-$29,600

NET INCREASE/(DECREASE) IN CASH

-$700

CASH, BEGINNING OF YEAR

17500

CASH, END OF YEAR

$16,800