Question

$597.000 $555.000 Additional information 1. Net income for 2017 was 393,000. 2. Cash dividends of $35.000 were declared and paid. 3. Bonds payable amountine to S50 000 redeemed for cash $50.000 4. Common stock was issued for $42.000 cash. 5. No equipment was sold during 2017, but land was sold at cost. Instructions Prepare a statement of cash flows for 2017 using the indirect method. E13-9 Rodriquez Corporation's comparative balance sheets are presented below. Prepare statement of cash flows and compute free cash (LO 2.3), AP RODRIGUEZ CORPORATION Comparative Talance Sheets December 31 2017 Cash $ 15,200 Accounts receivable 25,200 Investments 20.000 Equipment 60,000 Accumulated depreciation equipment (14,000) Total $106,400 2016 $ 17,700 22.300 16.000 70,000 (10,000) $116,000 Accounts payable Bonds payable Common stock Retained earnings Total - $ 14.600 10.000 50,000 31,800 $106,400 $ 11,100 30,000 45,000 29,900 $116,000 Additional information: 1. Net income was $18,300. Dividends declared and paid were $16,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold • for $3,300. 3. No noncash investing and financing activities occurred during 2017. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. home from Tum

Answer 1

Answer-

RODRIQUEZ CORPORATION
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31, 2017
Particulars		Amount
		$
Cash flow from operating activities
Net Income		18300
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation expense		5200
Loss on sale of equipment		5500
Change in operating assets & liabilities
Increase in Accounts receivable		-2900
Increase in accounts payable		3500
Net cash flow from operating activities (a)		29600
Cash Flow from Investing activities
Investements purchased		-4000
Equipment sold		3300
Net cash Flow from Investing activities (b)		-700
Cash Flow from Financing activities
Cash dividends paid		-16400
Common stock issued		5000
Bonds payable paid		-20000
Net cash Flow from Financing activities (c)		-31400
Net Change in cash c=a+b+c		-2500
Beginning cash balance		17700
Closing cash balance		15200