Financial and Managerial Accounting: E13-7 Rojas Corporation’s comparative balance sheets

Financial and Managerial Accounting E13-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash 14,300 10,700 Accounts receivable 21,200 23,400 Land 20,000 26,000 Buildings 70,000 70,000 Accumulated depreciation—buildings (15,000) (10,000)   Total $110,500 $120,100  Accounts payable 12,370 31,100 Common stock 75,000 69,000 Retained earnings 23,130 20,000    Total $110,500 $120,100  Additional information: 1. Net income was $22,630. Dividends declared and paid were $19,500. 2. No noncash investing and financing activities occurred during 2017. 3. The land was sold for cash of $4,900. Instructions: a. Prepare a statement of cash flows for 2017 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).) b. Compute free cash flow.
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