Question
Partial information from the comparative balance sheet of Jackson Company as of December 31, 2020 and 2019 reflected the following selected account balances. From the
Partial information from the comparative balance sheet of Jackson Company as of December 31, 2020 and 2019 reflected the following selected account balances. From the information contained on the balance sheet and the additional information below, prepare the Net Cash Flows from Operating activities to answer the following two questions.
Jackson Company
Comparative Balance Sheet Partial Information
2020 2019
Current Assets:
Cash $114,000 $100,000
Accounts receivable 18,400 20,700
Inventory 62,200 59,600
Current Liabilities:
Accounts payable 29,300 26,600
Accrued liabilities 9,700 10,100
Additional information:
Net income 69,000
Depreciation expense 8,000
Question:
What is the amount of the total adjustments to net income (total of the adjustments column)?
| a. | $10,800 | |
| b. | $12,400 | |
| c. | $10,000 | |
| d. | $7,700 |
See the previous question. How much is the net cash flows from operating activities?
| a. | $79,000 | |
| b. | $64,000 | |
| c. | $8,400 | |
| d. | $12,400 |
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Financial Accounting
Authors: Belverd E. Needles Jr,, Marian Powers
8th Edition
0618310746, 978-0618310746
