Question
The chief accountant for Julius Co. provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for
The chief accountant for Julius Co. provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2021 statement of cash flows. 2021 Income Statement ($ in thousands) Sales revenue $5,000 Depreciation expense 280 Selling & administrative expense 3,720 Income before taxes 1,000 Income tax expense 300 Net income $700 Balance Sheet (all $ in thousands) 12/31/2021 12/31/2020 Cash $800 $750 Accounts receivable 450 365 Property, plant & equipment 1,900 1,450 Less: Accumulated depreciation ( 800) (520) Total Assets $2,350 $2,045 Accrued liabilities for selling & administration expenses 300 325 Income taxes payable 180 130 Common stock 700 700 Retained earnings 1,170 890 Total Liabilities & Equity $2,350 $2,045 a. Compute the Cash flow from Operating Activities using the Direct Method. Show the line items that would be in the Cash Flow from Operating Activities. b. Compute the Cash flow from Investing Activities c. Compute the Cash flow from Financing Activities d. What should Julius show as a total change in cash this year at the end of the Statement of Cash Flow?
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