Rodriquez Corporation’s comparative balance sheets are presented below:
RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash $16,700
$17,500
Accounts receivable 24,900
22,300
Investments 20,050
16,050
Equipment 59,950
70,150
Accumulated depreciation—equipment (14,250
)
(10,000
)
Total $107,350
$116,000
Accounts payable $14,850
$11,050
Bonds payable 10,900
30,000
Common stock 50,100
44,500
Retained earnings 31,500
30,450
Total $107,350
$116,000
Additional information:
1. Net income was $18,450. Dividends declared and paid were $17,400.
2. Equipment which cost $10,200 and had accumulated depreciation of $1,700 was sold for $3,700.
3. No noncash investing and financing activities occurred during 2020.
A. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)
B. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)