The drop down has specific options Rojas Corporation\'s comparative balance shee

ID: 2529493 • Letter: T

Question

The drop down has specific options

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 $10,500 23,500 26,500 69,800 $14,200 21,700 20,200 69,800 (15,200)(11,000) Total $110,700 119,300 Accounts payable Common stock Retained earnings $11,800 $28,600 71,200 23,700 19,500 $119,300 75,200 Total S110,700 Additional information: Net income was $22,200. Dividends declared and paid were $18,000. 2. No noncash investing and financing activities occurred during 2017 3. The land was sold for cash of $4,200!

Explanation / Answer

Solution:-

Cash Flow from Operating activities

Net Income

22200

Dep Exp

4200

Loss on disposal of land

1600

Decrease in Ac Payable

(16800)

Decrease in Ac Receivable

1800

Net cash provided by operating activity (A)

13000

Cash Flow from Investing activities

Sale of Land

4700

Net cash provided by Investing activity (B)

4700

Cash Flow from Financing activities

Payment of dividend

(18000)

Issue of common stock

4000

Net cash provided by Financing activity (C)

(14000)

Net increase in cash (A+B+C)

3700

Cash at beginning

10500

Cash at end of period

14200