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ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 $15,100 $10,3

ID: 2492650 • Letter: R

Question

ROJAS CORPORATION
Comparative Balance Sheets
December 31

2017

2016

$15,100

$10,300

21,500

23,800

20,500

26,400

70,100

70,100

(15,000

)

(10,300

)

$112,200

$120,300

$12,500

$28,400

75,800

73,100

23,900

18,800

$112,200

$120,300

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

$15,100

$10,300

Accounts receivable

21,500

23,800

Land

20,500

26,400

Buildings

70,100

70,100

Accumulated depreciation—buildings

(15,000

)

(10,300

)

   Total

$112,200

$120,300

Accounts payable

$12,500

$28,400

Common stock

75,800

73,100

Retained earnings

23,900

18,800

   Total

$112,200

$120,300


Additional information:
1. Net income was $22,200. Dividends declared and paid were $17,100. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,800.

Explanation / Answer

Statement o9f Cash Flows Indirect Method Cash Flow From Operating Activities Net Income 22200 Depreciation 4700 Decrease in Accounts Receivable 2300 Decrease in Accounts Payable -15900 Loss on sale of land 1100 Cash Flow From Operating Activities 14400 Cash Flow From Investing Activities Land sold 4800 Cash Flow From Investing Activities 4800 Cash Flow From Financing Activities Dividend -17100 Common Stock 2700 Cash used From Financing Activities -14400 Net Cash Flow 4800 Beginning Cash 10300 Ending Cash 15100