The following additional information was taken from the records of Juras equipment:

1. a.Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $129,600 cash.
4. The common stock was issued for cash.
5. There was a $228,960 credit to Retained Earnings for net income.
6. There was a $144,000 debit to Retained Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows

from operating activities.

	My Answer:
	Cash flows from operating activities:
		Net income							$228,960
		Adjustments to reconcile net income to net cash
		flow from operating activities:
		Depreciation							20,880
		Loss on inventory write down and fixed assets	Loss on sale of investments						14,400
		Changes in current operating assets and liabilities:
			Increase in accounts receivable						(26,880)
			Increase in inventories						(12,240)
			Increase in accounts payable						16,320
			Increase in accrued expenses payable						5,280
		Net cash flow from operating activities										$246,720
	Cash flows from investing activities:
		Cash received from sale of investments							$129,600
		Less cash paid for purchase of land							(417,600)
		Less cash paid for purchase of equipment							(113,760)
		Net cash flow used for investing activities										(401,760)
	Cash flows from financing activities:
		Cash received from sale of common stock							$324,000
		Less cash paid for dividends							(136,800)
		Net cash flow provided by financing activities										187,200
	Increase in cash											$32,160
	Cash at the beginning of the year											67,680
	Cash at the end of the year											$99,840

						Balance,		Transactions						Balance,
						Dec. 31, 2012			Debit			Credit		Dec. 31, 2013
	Cash					67,680		O	32,160					99,840
	Accounts receivable (net)					265,680		n	26,880					292,560
	Inventories					409,200			12,240					421,440
	Investments					144,000						144,000		-
	Land					-			417,600					417,600
	Equipment					505,440			113,760					619,200
	Accum. depr. - equipment					(119,040)						20,880		(139,920)
	Accounts payable					(274,080)						16,320		(290,400)
	Accrued expenses payable					(37,920)						5,280		(43,200)
	Dividends payable					(28,800)						7,200		(36,000)
	Common stock, $1 par					(144,000)						18,000		(162,000)
	Paid-in capital in excess of par					(288,000)						306,000		(594,000)
	Retained earnings					(500,160)						84,960		(585,120)
	Totals					-			602,640			602,640		-
	Please help on this (below i'm stuck here) Operating activities:
		Net income							84,960
		Depreciation							20,880
		Loss on sale of investments							14,440
		Increase in accounts receivable										26,880
		Increase in inventories										12,240
		Increase in accounts payable							16,320
		Increase in accrued expenses payable							5,280
	Investing activities:
		Purchase of equipment										113,760
		Purchase of land										417,600
		Sale of investments							129,000
	Financing activities:
		Declaration of cash dividends							144,000
		Sale of common stock							18,000
		Increase in dividends payable							7,200
	Net increase in cash								31,160
	Totals

The following additional information was taken from the records of Juras equipment: a. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $129,600 cash. The common stock was issued for cash. There was a $228,960 credit to Retained Earnings for net income. There was a $144,000 debit to Retained Earnings for cash dividends declared.Instructions: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.MyAnswer:Cash flows from operating activities: Net income $228,960 Adjustments to reconcile net income to net cashflow from operating activities:Depreciation 20,880 Loss on inventory write down and fixed assets Loss on sale of investments 14,400 Changes in current operating assets and liabilities: Increase in accounts receivable (26,880) Increase in inventories (12,240) Increase in accounts payable 16,320 Increase in accrued expenses payable 5,280 Net cash flow from operating activities$246,720 Cash flows from investing activities: Cash received from sale of investments $129,600 Less cash paid for purchase of land (417,600) Less cash paid for purchase of equipment (113,760) Net cash flow used for investing activities(401,760) Cash flows from financing activities: Cash received from sale of common stock $324,000 Less cash paid for dividends (136,800) Net cash flow provided by financing activities187,200 Increase in cash $32,160 Cash at the beginning of the year 67,680 Cash at the end of the year $99,840Balance, Transactions Balance, Dec. 31, 2012Debit CreditDec. 31, 2013 Cash 67,680 O 32,16099,840 Accounts receivable (net) 265,680 n 26,880292,560 Inventories 409,200 12,240421,440 Investments 144,000144,000 - Land - 417,600417,600 Equipment 505,440 113,760619,200 Accum. depr. - equipment (119,040)20,880 (139,920) Accounts payable (274,080)16,320 (290,400) Accrued expenses payable (37,920)5,280 (43,200) Dividends payable (28,800)7,200 (36,000) Common stock, $1 par (144,000)18,000 (162,000) Paid-in capital in excess of par (288,000)306,000 (594,000) Retained earnings (500,160)84,960 (585,120) Totals - 602,640 602,640 -Please help on this (below i'm stuck here) Operating activities: Net income84,960Depreciation20,880Loss on sale of investments14,440Increase in accounts receivable 26,880 Increase in inventories 12,240 Increase in accounts payable16,320Increase in accrued expenses payable5,280 Investing activities: Purchase of equipment 113,760 Purchase of land 417,600 Sale of investments129,000 Financing activities: Declaration of cash dividends144,000Sale of common stock18,000Increase in dividends payable7,200 Net increase in cash 31,160 Totals The following additional information was taken from the records of Juras equipment: a. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $129,600 cash. The common stock was issued for cash. There was a $228,960 credit to Retained Earnings for net income. There was a $144,000 debit to Retained Earnings for cash dividends declared.Instructions: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.MyAnswer:Cash flows from operating activities: Net income $228,960 Adjustments to reconcile net income to net cashflow from operating activities:Depreciation 20,880 Loss on inventory write down and fixed assets Loss on sale of investments 14,400 Changes in current operating assets and liabilities: Increase in accounts receivable (26,880) Increase in inventories (12,240) Increase in accounts payable 16,320 Increase in accrued expenses payable 5,280 Net cash flow from operating activities$246,720 Cash flows from investing activities: Cash received from sale of investments $129,600 Less cash paid for purchase of land (417,600) Less cash paid for purchase of equipment (113,760) Net cash flow used for investing activities(401,760) Cash flows from financing activities: Cash received from sale of common stock $324,000 Less cash paid for dividends (136,800) Net cash flow provided by financing activities187,200 Increase in cash $32,160 Cash at the beginning of the year 67,680 Cash at the end of the year $99,840Balance, Transactions Balance, Dec. 31, 2012Debit CreditDec. 31, 2013 Cash 67,680 O 32,16099,840 Accounts receivable (net) 265,680 n 26,880292,560 Inventories 409,200 12,240421,440 Investments 144,000144,000 - Land - 417,600417,600 Equipment 505,440 113,760619,200 Accum. depr. - equipment (119,040)20,880 (139,920) Accounts payable (274,080)16,320 (290,400) Accrued expenses payable (37,920)5,280 (43,200) Dividends payable (28,800)7,200 (36,000) Common stock, $1 par (144,000)18,000 (162,000) Paid-in capital in excess of par (288,000)306,000 (594,000) Retained earnings (500,160)84,960 (585,120) Totals - 602,640 602,640 -Please help on this (below i'm stuck here) Operating activities: Net income84,960Depreciation20,880Loss on sale of investments14,440Increase in accounts receivable 26,880 Increase in inventories 12,240 Increase in accounts payable16,320Increase in accrued expenses payable5,280 Investing activities: Purchase of equipment 113,760 Purchase of land 417,600 Sale of investments129,000 Financing activities: Declaration of cash dividends144,000Sale of common stock18,000Increase in dividends payable7,200 Net increase in cash 31,160 Totals