Jobim Inc had the following condensed balance sheet at the end of operations for 2013:

                                                      JOBIM INC 

                                                  BALANCE SHEET 

                                                DECEMBER 31 2013 

Cash                                                   8,570            Current liabilities                14,760 

Current assets other than cash    28,920           Long term notes payable   25,410 

Investments                                      19,850               Bonds payable                 24,870 

Plant assets net                                67,310                  Capital stock                  75,480 

Land                                                    39,880                 Retained earnings           24,010 

                                                            164,530                                                          164,530 

During 2014, the following occurred.

1. A tract of land was purchased for $11,030.

2. Bonds payable in the amount of $20,000 were redeemed at par.

3. An additional $10,000 in capital stock was issued at par.

4. Dividends totaling $9,375 were paid to stockholders.

5. Net income was $35,250 after allowing depreciation of $13,500.

6. Land was purchased through the issuance of $22,500 in bonds.

7. Jobim Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.

8. Both current assets (other than cash) and current liabilities remained at the same amount.

INSTRUCTIONS

(a) Prepare a statement of cash flows for 2014 using the indirect method.

(b) Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2014.

Answer rating: 100% (QA)

Answer 1 Jobim Inc Statement of Cash Flows Indirect Method For the Year ended Dec 31 2014 Cash Flow ... View the full answer