) Johnson Tires Company uses the indirect method to prepare the statement of cash flows. Refer to...
Question:
) Johnson Tires Company uses the indirect method to prepare the statement of cash flows. Refer to the following comparative balance sheet for Johnson Tires Company and complete the third column to show the increases or decreases.
Johnson Tires Company
Comparative Balance Sheet
December 31, 2017 and 2016
Increase/
2016 2015 (Decrease)
Cash $39,600 $19,800 19,800
Accounts Receivable 26,400 38,500
Merchandise Inventory 204,000 126,500
Total Assets 270,000 184,800
Accounts Payable 4,800 6,600
Accrued Liabilities 2,400 1,100
Long-term Notes Payable 100,800 99,000
Total Liabilities 108,000 106,700
Common Stock 36,000 2,200
Retained Earnings 135,600 81,400
Treasury Stock (9,600) (5,500)
Total Stockholders' Equity 162,000 78,100
Total Liabilities and Stockholders' Equity $270,000 $184,800
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas