Prepare a Statement of Cash Flows from the following data: Jacoby Corporation, a merchandiser, recently completed its
Question:
Prepare a Statement of Cash Flows from the following data:
Jacoby Corporation, a merchandiser, recently completed its calendar year 2013 operations. For the year:
? All sales are credit sales
? All credits to Accounts Receivable reflect cash receipts from customers
? All purchases of inventory are on credit
? All debits to Accounts Payable reflect cash payments for inventory
? Other expenses are paid in advance and are initially debited to Prepaid Expenses.
? The company?s balance sheets and income statement follow.
Additional Information on Year 2011 Transactions
a. The loss on the cash sale of equipment was $2,100 (details in b).
b. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.
c. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance
d. Borrowed $6,000 cash by signing a short-term note payable.
e. Paid $45,000 cash to reduce the long-term notes payable.
f. Issued 3,000 shares of common stock for $11 cash per share.
g. Declared and paid cash dividends of $63,000.
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty