Rodriquez Corporation's comparative balance sheets are presented below.

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 2020.

Instructions

1. Prepare a statement of cash flows for 2020 using the indirect method
2. Compute free cash flow

Solution