Problem 125

Selected financial statement information and additional data for Johnston Enterprises is presented below:

Johnston Enterprises Balance Sheet and Income Statement Data
		December 31, 2017			December 31, 2016
Current Assets:
Cash		$179,520			$118,700
Accounts Receivable		233,400			308,800
Inventory		395,200			344,100
Total Current Assets		808,120			771,600
Property, Plant, and Equipment		1,280,300			1,147,000
Less: Accumulated Depreciation		(464,100)			(437,000)
Total Assets		1,624,320			1,481,600
Current Liabilities:
Accounts Payable		$190,100			$100,300
Notes Payable		48,300			67,000
Income Taxes Payable		84,300			75,300
Total Current Liabilities		322,700			242,600
Bonds Payable		350,000			387,300
Total Liabilities		672,700			629,900
Stockholders' Equity:
Common Stock		510,000			467,500
Retained Earnings		441,620			384,200
Total Stockholders' Equity		951,620			851,700
Total Liabilities & Stockholders' Equity		1,624,320			1,481,600
Sales Revenue		$1,629,300			$1,523,000
Less Cost of Goods Sold		757,500			711,000
Gross Profit		871,800			812,000
Expenses:
Depreciation Expense		152,400			135,200
Salaries and Wages Expense		384,200			354,100
Interest Expense		31,300			31,300
Loss on Sale of Equipment		11,200			0
Income Before Taxes		292,700			291,400
Less Income Tax Expense		117,080			116,560
Net Income		175,620			174,840

Additional Information: During the year, Johnston sold equipment with an original cost of $138,400 and accumulated depreciation of $125,300 and purchased new equipment for $271,700. Prepare a statement of cash flows for the year ending December 31, 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

ohnston Enterprises Statement of Cash Flows Adjustments to reconcile net income to