Rojas Corporation's comparative balance sheets are presented below.
Rojas Corporation
Comparative Balance Sheets
December 31
Comparative Balance Sheets
December 31
Additional Information
- Net income was $22,630. Dividends declared and paid were $19,500.
- No noncash investing and financing activities occurred during 2020.
- The land was sold for cash of $4,900.
Instructions
- Prepare a statement of cash flows for 2020 using the indirect method
- Compute free cash flow
Solution
a.
Rojas Corporation
Statement of Cash Flows - Indirect Method
For the Year Ended December 31, 2020
Statement of Cash Flows - Indirect Method
For the Year Ended December 31, 2020
b. Free Cash Flow
