The income statement and additional data of Jubilee World, Inc., follow: Additional data: a. Collections from customers
Question:
The income statement and additional data of Jubilee World, Inc., follow:
Additional data:
a. Collections from customers are $15,500 more than sales.
b. Payments to suppliers are $1,700 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $2,200 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $176,000. Of this amount, $122,000 is paid in cash and $54,000 is financed by signing a long-term note payable.
f. Proceeds from the sale of land totaled $24,000.
g. Proceeds from the issuance of common stock totaled $39,000.
h. Payment of a long-term note payable is $20,000.
i. Payment of dividends is $7,000.
j. Cash balance, June 30, 2017, was $32,000.
Requirements
1. Prepare Jubilee World’s statement of cash flows and accompanying schedule of noncash investing and financing activities. Report operating activities using the direct method.
2. Evaluate the company’s cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.