Question

Rodriquez Corporation’s comparative balance sheets are presented below.

RODRIQUEZ CORPORATION Comparative Balance Sheets December 31
		2017			2016
Cash		$17,000			$17,500
Accounts receivable		25,000			22,400
Investments		19,850			16,050
Equipment		60,050			69,750
Accumulated depreciation—equipment		(13,750	)		(10,400	)
Total		$108,150			$115,300
Accounts payable		$14,750			$11,250
Bonds payable		10,400			30,000
Common stock		49,500			45,200
Retained earnings		33,500			28,850
Total		$108,150			$115,300

Additional information:

1.		Net income was $18,450. Dividends declared and paid were $13,800.
2.		Equipment which cost $9,700 and had accumulated depreciation of $1,700 was sold for $3,300.
3.		No noncash investing and financing activities occurred during 2017. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).)

Answer 1

Statement of cash flow :

Cash flow from operating activities
Net income		18450
Adustmetn to reconcile net income to net cash flow from operating activities
Depreciation expense (3350+1700)	5050
Loss on sale of equipment	4700
Increase account receivable	-2600
Increase account payable	3500
		10650
Net cash flow from operating activities		29100
Cash flow from investing activities
Purchase investment	-3800
Sale of equipment	3300
Net cash used in investing activities		-500
cash flow from financing activities
Dividend paid	-13800
Issue Common Stock	4300
Repaid bonds payable	-19600
Net cash used in financing activities		-29100
Net cash flow		-500
Beginning cash		17500
Ending Cash		17000