Question
32. The comparative balance sheet for 2019 and 2018 for Jackson Corporation as well as additional information concerning transactions and events during 2019 are presented
32. The comparative balance sheet for 2019 and 2018 for Jackson Corporation as well as additional
information concerning transactions and events during 2019 are presented below:
Jackson Corporation
Balance Sheet
December 31, 2019 and 2018
2019 2018
Cash $ 35,900 $ 10,200
Accounts receivable (net) 48,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 236,500 150,000
Accumulated depreciation (37,700) (25,000)
$318,000 $212,500
Accounts payable $ 19,000 $ 26,500
Accrued liabilities 19,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 80,000 29,000
$318,000 $212,500
Additional data:
(a) Net income for the year 2019 was $90,000.
(b) Depreciation on plant assets for the year was $12,700.
(c) Sold the long-term investments for $33,000 (at a gain of $18,000).
(d) Paid dividends of $39,000.
(e) Purchased machinery costing $26,500 and paid cash.
Required:
Using the indirect method, prepare a statement of cash flows for 2019 for Jackson Corporation.
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