Jelly Bean, Inc., began 2012 with cash of $53,000. During the year Jelly Bean earned revenue of

Question:

Jelly Bean, Inc., began 2012 with cash of $53,000. During the year Jelly Bean earned revenue of $597,000 and collected $621,000 from customers. Expenses for the year totaled $437,000, of which Jelly Bean paid $427,000 in cash to suppliers and employees. Jelly Bean also paid $145,000 to purchase equipment and a cash of $54,000 to its stockholders during 2012.
Requirement
1. Prepare the company’s statement of cash flows for the year ended December 31, 2012. Format operating activities by the direct method.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...