Question
Selected financial statement information and additional data for Johnson Co. is presented below. Prepare a statement of cash flows for the year ending December 31,
Selected financial statement information and additional data for Johnson Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2014
| December 31 | |||||
| 2013 | 2014 | ||||
Cash | $42,000 | $65,000 |
| |||
Accounts receivable (net) | 84,000 | 144,200 |
| |||
Inventory | 168,000 | 206,600 |
| |||
Land | 58,800 | 21,000 |
| |||
Equipment | 504,000 | 789,600 |
| |||
TOTAL | $856,800 | $1,226,400 |
| |||
Accumulated depreciation | $84,000 | $115,600 |
| |||
Accounts payable | 50,400 | 86,000 |
| |||
Notes payable - short-term | 67,200 | 29,400 |
| |||
Notes payable - long-term | 168,000 | 302,400 |
| |||
Common stock | 420,000 | 487,200 |
| |||
Retained earnings | 67,200 | 205,800 |
| |||
TOTAL | $856,800 | $1,226,400 |
| |||
Additional data for 2014:
1. Net income was $220,200.
2. Depreciation was $31,600.
3. Land was sold at its original cost.
4. Dividends of $81,600 were paid.
5. Equipment was purchased for $84,000 cash.
6. A long-term note for $201,600 was used to pay for an equipment purchase.
7. Common stock was issued to pay a $67,200 long-term note payable.
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