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ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 $15,200 $10,6

ID: 2529262 • Letter: R

Question

ROJAS CORPORATION
Comparative Balance Sheets
December 31

2017

2016

$15,200

$10,600

20,700

23,500

20,300

26,300

69,900

69,900

(14,800

)

(10,500

)

$111,300

$119,800

$11,800

$28,300

75,900

71,600

23,600

19,900

$111,300

$119,800

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

$15,200

$10,600

Accounts receivable

20,700

23,500

Land

20,300

26,300

Buildings

69,900

69,900

Accumulated depreciation—buildings

(14,800

)

(10,500

)

   Total

$111,300

$119,800

Accounts payable

$11,800

$28,300

Common stock

75,900

71,600

Retained earnings

23,600

19,900

   Total

$111,300

$119,800


Additional information:
1. Net income was $23,100. Dividends declared and paid were $19,400. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,500.

Explanation / Answer

Statement of cash flow Net operating income 23,100 Adjustments to reconcile net income to net cash cash from operating activities Depreciation expens e 4300 loss on sale of land (5730-4,560) (6000-4500) 1500 Decrease in account receivable 2800 Decrease in accounts payable -16500 Net cash from operating activities 15,200 Cash flow from investing activities net cash flow from investing activities 4,500 Cash flow from financing activities Dividends -19,400 Cash from common stock issue 4300 net cash used by financing activities -15,100 net increase incash 4,600 cash at the beginning 10,600 cash at year end 15,200 Free cash flow cash from operating activities-capital expenditure - cash dividend 15200-0-19400 -4,200 answer