Question 4

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		$156,600			$116,900
Accounts Receivable		226,100			307,900
Inventory		397,900			342,100
Total Current Assets		780,600			766,900
Property, Plant, and Equipment		1,260,900			1,129,000
Less: Accumulated Depreciation		(455,800)			(430,300)
Total Assets		1,585,700			1,465,600
Current Liabilities:
Accounts Payable		$190,000			$102,000
Notes Payable		50,100			65,600
Income Taxes Payable		84,100			74,800
Total Current Liabilities		324,200			242,400
Bonds Payable		350,000			390,200
Total Liabilities		674,200			632,600
Stockholders' Equity:
Common Stock		510,000			467,500
Retained Earnings		401,500			365,500
Total Stockholders' Equity		911,500			833,000
Total Liabilities & Stockholders' Equity		1,585,700			1,465,600
Sales Revenue		$1,620,200			$1,511,000
Less Cost of Goods Sold		774,000			728,300
Gross Profit		846,200			782,700
Expenses:
Depreciation Expense		150,900			133,300
Salaries and Wages Expense		390,200			352,800
Interest Expense		33,300			33,300
Loss on Sale of Equipment		10,800			0
Income Before Taxes		261,000			263,300
Less Income Tax Expense		104,400			105,320
Net Income		156,600			157,980

Additional Information: During the year, Johnston sold equipment with an original cost of $138,300 and accumulated depreciation of $125,400 and purchased new equipment for $270,200. 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).)