Data from the comparative balance sheet of Johnson Company at March 31, 2014, follow: Johnson Companys transactions
Question:
Data from the comparative balance sheet of Johnson Company at March 31, 2014, follow:
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Johnson Company€™s transactions during the year ended March 31, 2014, included the following:
Payment of cash dividend ...............$33,500
Purchase of equipment for cash ............. 78,300
Issuance of long-term note payable in exchange for cash .... 56,000
Depreciation Expense ..................$17,500
Purchase of building for cash .............. 47,800
Net Income .................... 73,500
Issuance of common shares .............. 13,000
Requirements
1. Prepare Johnson Company€™s cash flow statement for the year ended March 31, 2014, using the indirect method to report cash flows from operating activities.
2. Evaluate Johnson Company's cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Req 1 Johnson Company Statement of Cash Flows Year Ended March 312014 Cashflows from operatingactivi...View the full answer
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
