Rojas Corporation\'s comparative balance sheets are presented below ROJAS CORPOR

Question

Rojas Corporation's comparative balance sheets are presented below ROJAS CORPORATION Comparative Balance Sheets December 31 2015 2014 Cash Accounts receivable Land Buildings Accumulated depreciation-buildings $14,460 21,340 20,180 69,710 (14,810) $10,130 23,000 25,910 69,710 (10,450 ) Total $110,880 $118,300 Accounts payable Common stock Retained earnings $11,910 75,680 23,290 $30,790 69,280 18,230 $118,300 $110,880 Total Additional information: 1. Net income was $22,434. Dividends declared and paid were $17,374 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,560 Prepare a statement of cash flows for 2015 using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000, or in parenthesis e.g. (15,000).)

Explanation / Answer

Statement of cash flow Net operating income 22,434 Adjustments to reconcile net income to net cash cash from operating activities Depreciation expens e 4360 loss on sale of land (5730-4,560) 1170 Decrease in account receivable 1660 Decrease in accounts payable -18880 Net cash from operating activities 10,744 Cash flow from investing activities net cash flow from investing activities 4,560 Cash flow from financing activities Dividends -17,374 Cash from common stock issue 6400 net cash used by financing activities -10,974 net increase incash 4,330 cash at the beginning 10,130 cash at year end 14,460 Free cash flow cash from operating activities-capital expenditure - cash dividend 10,744-17374 -6,630 answer

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