Jobim Inc had the following condensed balance sheet at the end of operations for 2013: JOBIM INC
Question:
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.
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield