Question 1 Rojas Corporation\'s comparative balance sheets are presented below R

Question

Question 1 Rojas Corporation's comparative balance sheets are presented below 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 23,100 25,700 69,500 (15,000) (10,900) Total $109,900 $117,600 Accounts payable Common stock Retained earnings $27,600 71,100 18,900 109,900 $117,600 $12,800 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

Answer

Cash Flow from Operating Activities:

Net Income

$          22,600.00

Add: Adjustments

Depreciation expense

$        4,100.00

Loss on sale of land

$            900.00

Decrease in Accounts receivables

$        2,400.00

Increase in Accounts payable

$    (14,800.00)

$          (7,400.00)

A. Cash Flow from Operating Activities

$          15,200.00

Cash Flow from Investing Activities:

sale of Land

$        4,700.00

B. Cash flow from Investing Activities

$             4,700.00

Cash Flow from Financing Activities:

Issue of Common Stock

$        3,100.00

Dividend paid

$    (18,600.00)

C. Cash Flow from Financing Activities

$        (15,500.00)

Increase (Decrease) in cash [A+B+C]

$             4,400.00

Add: cash at the beginning [2016 balance]

$          10,200.00

Cash at the end [2017 Balance]

$          14,600.00

Cash Flow from Operating Activities:

Net Income

$          22,600.00

Add: Adjustments

Depreciation expense

$        4,100.00

Loss on sale of land

$            900.00

Decrease in Accounts receivables

$        2,400.00

Increase in Accounts payable

$    (14,800.00)

$          (7,400.00)

A. Cash Flow from Operating Activities

$          15,200.00

Cash Flow from Investing Activities:

sale of Land

$        4,700.00

B. Cash flow from Investing Activities

$             4,700.00

Cash Flow from Financing Activities:

Issue of Common Stock

$        3,100.00

Dividend paid

$    (18,600.00)

C. Cash Flow from Financing Activities

$        (15,500.00)

Increase (Decrease) in cash [A+B+C]

$             4,400.00

Add: cash at the beginning [2016 balance]

$          10,200.00

Cash at the end [2017 Balance]

$          14,600.00

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