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Homework: Homework 3 Save Score: 0.11 of 2 pts 5 of 5 (5 complete) HW Score: 70.88%, 7.09 of 10 pts % Problem 3-16 (similar to) Question Help and income statement, , for T. P. Jarmon Company for the year ended December 31, (Working with financial statements) Based on the balance sheet, 2018: a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. c. Compute the changes in the balance sheets from 2017 to 2018. a. How much is the firm's net working capital and what is the debt ratio? The net working capital is $ 62220. (Round to the nearest dollar.) The debt ratio is 55.4 %. (Round to one decimal place.) b. Complete a statement of cash flows for the period. Complete the operating activities part of the statement of cash flows: (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outflows as negative values.) Statement of Cash Flows Cash flows from Operating Activities 41,820 Net income Adjustments 30,000 (200) 9,100 Depreciation Increase in marketable securities Decrease in accounts receivable Prepaid expenses Increase in inventories (less A/P) Decrease in accruals -32520 (800) Net cash provided by operating activities 47400 Enter any number in the edit fields and then click Check Answer. 4 parts 4 remaining Clear All Check Answer

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Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part b) 5 41,820 Statement of cashflows Cash Flows From Operating Activities 6 Net Income $ 7 Adjustments 3 Depreciation 9 Increase in Marketable Securities 10 Decrease in account receivable $ 11 Prepaid expenses 12 Increase in inventories (less A/P) (-32520+9100) $ 13 Decrease in accruals $ 14 Net cash provided by operating activities 30,000 (200) 9,100 0 (23,420) (800) | $ 56,500 16 Increase in inventories (less A/P) = - Increase in inventories + increase in account receuivable 17 = -(83520-51000) + (57100-48000) 18 = -$23420

partc) T.P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets Increase 2017 2018 / decrease) 24 Cash 15000 13800 -1200 25 Marketable Securities 6000 6200 200 26 Account Receivable 42000 32900 -9100 27 Inventory 51000 83520 32520 28 Prepaid Rent 1200 1200 29 Total Current Assets 115200 137620 22420 30 Net Plant and equipment 286000 270500 -15500 31 Total assets 401200 408120 6920 32 Liabilities Increase 2017 /(decrease) 34 Account Payable 48000 57100 35 Accruals 6000 5200 -800 36 Notes Payable 15000 13100 -1900 37 Total current liabilities 69000 75400 6400 38 Long Term Debt 160000 150500 -9500 39 Common stockholders Equity 172200 L 182220 10020 40 Total liabilities and equity 401200 408120 6920 41 As format has not been given in the question, ws the above format has been used to solve the question. Percentage increase / (decrease) -8.00 3.33 -21.67 63.76 0.00 19.46 -5.42 1.72 0 2018 33 9100 Percentage increase / (decrease) 18.96 -13.33 -12.67 9.28 -5.94 5.82 1.72