The 2025 income statement and comparative balance sheet of Jayceon, Inc. follow: 

Additionally, Jayceon, Inc. purchased land of $24,500 by financing it 100% with longterm notes payable during 2025. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $12,060.The plant acquisition was for cash.

Requirements 

1. Prepare the 2025 statement of cash flows, formatting operating activities by the indirect method. 

2. How will what you learned in this problem help you evaluate an investment?

Transcribed Image Text:

JAYCEON, INC. Income Statement Year Ended December 31, 2025 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue Interest Expense Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income $ 72,400 14,500 10,000 8,500 (21,500) $ 438,000 209,200 228,800 96,900 131,900 (13,000) 118,900 19,400 $ 99,500