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		$170,120			$118,900
Accounts Receivable		221,900			306,500
Inventory		391,900			340,900
Total Current Assets		783,920			766,300
Property, Plant, and Equipment		1,265,100			1,131,000
Less: Accumulated Depreciation		(469,400)			(443,800)
Total Assets		1,579,620			1,453,500
Current Liabilities:
Accounts Payable		$190,200			$101,300
Notes Payable		47,200			65,800
Income Taxes Payable		85,000			75,400
Total Current Liabilities		322,400			242,500
Bonds Payable		350,000			388,500
Total Liabilities		672,400			631,000
Stockholders' Equity:
Common Stock		510,000			467,500
Retained Earnings		397,220			355,000
Total Stockholders' Equity		907,220			822,500
Total Liabilities & Stockholders' Equity		1,579,620			1,453,500
Sales Revenue		$1,623,300			$1,516,000
Less Cost of Goods Sold		777,600			729,900
Gross Profit		845,700			786,100
Expenses:
Depreciation Expense		148,500			131,400
Salaries and Wages Expense		386,900			354,300
Interest Expense		32,000			32,000
Loss on Sale of Equipment		13,100			0
Income Before Taxes		265,200			268,400
Less Income Tax Expense		106,080			107,360
Net Income		159,120			161,040

Additional Information: During the year, Johnston sold equipment with an original cost of $137,800 and accumulated depreciation of $122,900 and purchased new equipment for $271,900. 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).)

Johnston Enterprises Statement of Cash Flows Adjustments to reconcile net income to $ Open Show Work Click if you would like to Show Work for this