Based on the information below, prepare a statement of cash flows for 2018 and then answer the
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Based on the information below, prepare a statement of cash flows for 2018 and then answer the questions following the problem information.
Johnston Enterprises | ||
Balance Sheet and Income Statement Data | ||
31-Dec-18 | 31-Dec-17 | |
Current Assets: | ||
Cash | 153,000 | 119,000 |
Accounts Receivable | 238,000 | 306,000 |
Inventory | 391,000 | 340,000 |
Total Current Assets | 782,000 | 765,000 |
Property, Plant, and Equipment | 1,241,000 | 1,122,000 |
Less: Accumulated Depreciation | (476,000) | (442,000) |
Property, plant & equip, net | 765,000 | 680,000 |
Total Assets | 1,547,000 | 1,445,000 |
Current Liabilities: | ||
Accounts Payable | 187,000 | 102,000 |
Dividends Payable | 51,000 | 68,000 |
Salaries and wages payable | 85,000 | 76,500 |
Total Current Liabilities | 323,000 | 246,500 |
Bonds Payable | 340,000 | 391,000 |
Total Liabilities | 663,000 | 637,500 |
Stockholders' Equity: | ||
Common Stock | 510,000 | 467,500 |
Retained Earnings | 374,000 | 340,000 |
Total Stockholders' Equity | 884,000 | 807,500 |
Total Liabilities & Stockholders' Equity | 1,547,000 | 1,445,000 |
Sales Revenue | 1,615,000 | 1,513,000 |
Less Cost of Goods Sold | 751,000 | 731,000 |
Gross Profit | 864,000 | 782,000 |
Expenses: | ||
Depreciation Expense | 153,000 | 136,000 |
Salaries and Wages Expense | 391,000 | 357,000 |
Interest Expense | 34,000 | 34,000 |
Loss on Sale of Equipment | 12,000 | - |
Income Before Taxes | 274,000 | 255,000 |
Less Income Tax Expense | 110,000 | 102,000 |
Net Income | 164,000 | 153,000 |
Additional Information:
- During the year, Johnston sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000
- Outstanding bonds were paid off, no new bonds were issued.
- Dividends were declared during the year and dividends were paid during the year. You need to work through retained earnings accounts to figure out the amount of dividends declared and the amount of dividends paid. These are different amounts.
- Common stock was sold during the year.
- Taxes paid (cash) during the year were $93,220
- Interest paid (cash) during the year was $42,000
Calculate the following amounts:
6. Cash provided/(used) by operating activities.
7. Proceeds from sale of equipment.
8. Cash provided/(used) by investing activities.
9. Dividends declared during 2018.
10. Cash provided/(used) by financing activities.
Related Book For
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
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