Referring to balance sheet and income statement of Jacob Co. below, prepare the cash flow from operating activities as one of the components of cash flow statement (5 marks)

(Note: Its NOT required to prepare cash flow investing and financing activities)

Jacob Company

Comparative Balance Sheets

December 31st, FY 2021 and FY 2020

FY 2021

FY 2020

Change

Cash

85,000

35,000

50000

Receivables

58,900

48,900

10000

Inventory

54,000

60,000

-6000

Prepaid Expenses

6,000

9,000

-3000

Plant Assets

440,000

340,000

100000

Accumulated depreciation

(145,000)

(125,000)

-20000

Intangible assets

51,000

58,000

-7000

TOTAL ASSETS

549,900

425,900

124000

Account Payable

71,000

56,000

15000

Accrued expenses

18,000

14,000

4000

Long-term note payable

30,000

-

30000

Mortgage payable

-

123,000

-123000

Preferred stock

175,000

-

175000

Common stock

200,000

200,000

0

Retained earnings

55,900

32,900

23000

Total Liabilities & Equity

549,900

425,900

124000

Sitra Company
Income Statement
December 31st, FY 2021
Sales	665000
Cost of Good Sold	-350000
Gross Profit	315000
Operating Expenses	-183000
Depreciation & Amortization	-45000
Gain on Sale of Asset	6500
Net Income	93500
Additional information
1. Jacob company purchased an equipment during the year at cost of $ 75,000
2. A production equipment was sold during the year for $ 44,000
3. Dividends paid during year 2021 are $ 111,000

Jacob Company
Statement of Cash Flow
December 31st, FY 2021

	Amount ($)
Net income
Add (deduct)
Net Cash Flow from Operating