(Solution) - Data for Rocastle Company are presented in P17 7B Further analy -(2025 Original AI-Free Solution)

Paper Details

Data for Rocastle Company are presented in P17-7B. Further analysis reveals the following.
1. Accounts payable pertains to merchandise creditors.
2. All operating expenses except for depreciation are paid in cash.
Instructions
(a) Prepare a statement of cash flows using the direct method.
(b) Compute free cash flow.