Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Johnson Educational Supply at December 31, 2018, reported the following: Click the icon to view the comparative balance sheet.) Johnson's

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The comparative balance sheet of Johnson Educational Supply at December 31, 2018, reported the following: Click the icon to view the comparative balance sheet.) Johnson's transactions during 2018 included the following: Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare the statement of cash flows of Johnson Educational Supply for the year ended December 31, 2018. Use the Indirect method to report cash flows from operating activities. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty, do not select a label or enter a zoro.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Johnson Educational Supply Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Incomo Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Data Table 2018 2017 Current Assets: Cash $ 93,000 $ 22,500 Accounts Receivable 14,600 22,100 Merchandise Inventory 63,400 60,200 Current Liabilities: Accounts Payable 29,600 28,100 Accrued Liabilities 10,700 10,800 er Red red Print Done le conto Mew the transactions Data Table $ 17,200 55,200 Depreciation expense Purchase of building with cash $ 17,600 100,000 Payment of cash dividends Purchase of equipment with cash Issuance of long-term notes payable to borrow cash Issuance of common stock for cash Net income 59,600 52,000 108,000 Print Done Requirements 1. Prepare the statement of cash flows of Johnson Educational Supply for the year ended December 31, 2018. Use the indirect method to report cash flows from operating activities. 2. Evaluate Johnson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3. If Johnson plans similar activity for 2019, what is its expected free cash flow? Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Employers Guide To Surviving Payroll And Human Resources Audits 2019

Authors: Paul E Love

1st Edition

1073422771, 978-1073422777

More Books

Students also viewed these Accounting questions

Question

At what level(s) was this OD intervention scoped?

Answered: 1 week ago