Question

Rojas Corporation’s comparative balance sheets are presented below.

ROJAS CORPORATION Comparative Balance Sheets December 31
		2020			2019
Cash		$14,700			$11,000
Accounts receivable		21,100			23,800
Land		20,000			25,600
Buildings		70,000			70,000
Accumulated depreciation—buildings		(15,400	)		(10,700	)
Total		$110,400			$119,700
Accounts payable		$12,300			$28,100
Common stock		74,600			73,800
Retained earnings		23,500			17,800
Total		$110,400			$119,700

Additional information:

1.		Net income was $23,000. Dividends declared and paid were $17,300.
2.		No noncash investing and financing activities occurred during 2020.
3.		The land was sold for cash of $4,700.

Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Free cash flow

$enter a dollar amount

Answer 1

Cash Flows from Operating Activities:
Net income		23000
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	4700
Loss on sale of Land	900
Decrease in Accounts Receivable	2700
Decrease in accounts payable	-15800
		-7500
Net cash provided by operating activities		15500
Net cash provided by operating activities	15500
Less: Dividends declared and paid	17300
Free cash flow	-1800