Question
Prepare a Statement of Cash Flows from the following data: Jacoby Corporation, a merchandiser, recently completed its calendar year 2013 operations. For the year: ?
Prepare a Statement of Cash Flows from the following data:
Jacoby Corporation, a merchandiser, recently completed its calendar year 2013 operations. For the year:
? All sales are credit sales
? All credits to Accounts Receivable reflect cash receipts from customers
? All purchases of inventory are on credit
? All debits to Accounts Payable reflect cash payments for inventory
? Other expenses are paid in advance and are initially debited to Prepaid Expenses.
? The company?s balance sheets and income statement follow.
Additional Information on Year 2011 Transactions
a. The loss on the cash sale of equipment was $2,100 (details in b).
b. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.
c. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance
d. Borrowed $6,000 cash by signing a short-term note payable.
e. Paid $45,000 cash to reduce the long-term notes payable.
f. Issued 3,000 shares of common stock for $11 cash per share.
g. Declared and paid cash dividends of $63,000.
Assets Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Total Assets Liabilities Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par Paid in capital in excess Retained earnings TOTAL Liabilities Jacoby Corporation Balance Sheet December 31, 2012 and 2013 2013 $136,500 74,100 454,500 17,100 278,250 (108,750) $851,700 $117,450 17,250 112,500 465,000 18,000 121,500 $851,700 2012 $71,550 90,750 490,200 19,200 216,000 (93,000) $794,700 $123,450 11,250 82,500 450,000 0 127,500 $794,700 Sales Cost of goods sold Gross profit Operating Expenses Depreciation expense Other expenses Total operating expenses Gain and losses Loss on sale of equipment Income before taxes Income tax expense Net income Jacoby Corporation Income Statement December 31, 2013 $36,600 392,850 $1,083,000 585,000 498,000 429,450 68,550 2,100 66,450 9,450 $57,000
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