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Exercise 17-08 (Part Level Submission) Rojas Corporations comparative balance sheets are presented below ROJAS CORPORATION C

Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts ROJAS CORPORATION Statement of Cash Flows

Cash Flows from Investing Activities Sale of Land 4500 X Net Cash Used by Investing Activities 4500 Cash Flows from Financing

The proper title for what's marked in red + free cash flow

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Answer #1
The proper title for the box marked in red is " Net cash provided by Investing activities"
Free cash flow:
Particulars Amount
Earnings before Interest and tax (1-tax rate)           22,000
(+) Depreciation & Ammortization              4,400
(+/-) Changes in the working capital
                Decrease in Accounts receivable              2,800
                Decrease in Accounts payable         (15,700)
(+/-) Net capital expenditure              4,500
Free cash flow           18,000

Since ,tax rate is not provided it is assumed as tax free economy

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