Answer
Jackson Inc | |||
Cash flow Statement - Indirect method | Calculation | ||
Cash flows from Operating Activities | |||
Net income | 151,860 | ||
Adjustments to reconcile net income to net cash from operating activities | |||
Net gain (loss) | (700) | ||
Amortization expense | 2,200 | ||
Depreciation expense-Building | 5,500 | =13,000-7,500 | |
Depreciation expense-Equipment | 13,000 | =48,500-35,500 | |
Depreciation expense-Delivery Equipment | 4,000 | =9,500-26,500+(23,000-2,000) | |
Changes in Working Capital | |||
Accounts Receivable | (7,160) | =40,500-47,660 | |
Allowance for doubtful amounts | 100 | =2,300-2,200 | |
Prepaid Insurance | (1,000) | =3,200-4,200 | |
Prepaid Rent | 5,600 | =5,600-0 | |
Inventories | (12,760) | =58,200-70,960 | |
Accounts Payable | (5,000) | =24,000-29,000 | |
Accrued Liabilities | (400) | =5,500-5,900 | |
Net Cash Provided/(Used) by Operating Activities | 155,240 | ||
Cash flows from Investing Activities | |||
Proceeds from sale of delivery equipment | 4,200 | ||
Proceeds from sale of patents | 6,500 | ||
Purchase of Land | (20,000) | =80,000-100,000 | |
Purchase of Delivery Equipment | (42,000) | =48,000-29,000+23,000 | |
Net Cash Provided/(Used) by Investing Activities | (51,300) | ||
Cash flows from Financing Activities | |||
Repayment of Mortgage payable | (66,400) | =89,000-155,400 | |
Proceeds from issuance of bonds | 104,200 | =100,000+4,200 | |
Proceeds from issuance of common stock | 10,000 | =(55,000+82,500)-(50,000+67,500)-10,000 | |
Reissue of treasury stock | 9,500 | ||
Dividends paid | (106,250) | =247,610-212,000-151,860+10,000 | |
Net Cash Provided/(Used) by Financing Activities | (48,950) | ||
Net Change in Cash | 54,990 | ||
Cash at Beginning of Period | 88,300 | ||
Cash at End of Period | 143,290 |
Workings | Calculation | |||
1 | Depreciation expense-Delivery Equipment | |||
Accumulated Dep - Opening Balance | 9,500 | |||
Accumulated Dep - Closing Balance | (26,500) | |||
Cost of delivery equipment sold | 23,000 | |||
Book value of delivery equipment sold | (2,000) | |||
Accumulated Dep on sales | 21,000 | |||
Depreciation expense-Delivery Equipment | 4,000 | |||
2 | Purchase of Delivery Equipment | |||
Closing balance | 48,000 | |||
Opening balance | (29,000) | |||
Cost of delivery equipment sold | 23,000 | |||
Purchase of Delivery Equipment | 42,000 | |||
3 | Stock Dividends | |||
Common Stock Value | 50,000 | |||
Par value per share | 2 | |||
Number of Common Stock | 25,000 | =50,000/2 | ||
5% Stock Dividends | 5% | |||
Number of shares of Stock Dividends | 1,250 | =25,000*5% | ||
FMV per share | 8 | |||
Stock Dividends Amount | 10,000 | =1,250 shares @ $8 | ||
4 | Proceeds from issuance of common stock | |||
Common stock - closing balance | 55,000 | |||
Additional paid in capital - closing balance | 82,500 | |||
137,500 | ||||
Common stock - opening balance | (50,000) | |||
Additional paid in capital - opening balance | (67,500) | |||
(117,500) | ||||
Stock Dividends | (10,000) | From above wkgs | ||
Proceeds from issuance of common stock | 10,000 | |||
5 | Dividends paid | |||
Retained earnings - closing balance | 247,610 | |||
Retained earnings - opening balance | (212,000) | |||
Net Income | (151,860) | |||
Stock Dividends | 10,000 | |||
Dividends paid | (106,250) |
Requirement (b)
Jackson Inc | ||
Cash flow Statement - Direct method | ||
Cash flows from Operating Activities | ||
Sales | 874,060 | |
Opening Accounts Receivable | 40,500 | |
Closing Accounts Receivable | (47,660) | |
Closing Allowance | 2,300 | |
Opening Allowance | (2,200) | |
Cash collections from customers | 867,000 | |
Cash payments | ||
Cost of sales | 546,400 | |
Opening Accounts Payable | 29,000 | |
Closing Accounts Payable | (24,000) | |
Closing Inventory | 70,960 | |
Opening Inventory | (58,200) | |
Cash paid to Suppliers | 564,160 | |
Operating expenses | 176,500 | |
Opening Accrued Liabilities | 5,900 | |
Closing Accrued Liabilities | (5,500) | |
Closing Prepaid Insurance | 4,200 | |
Opening Prepaid Insurance | (3,200) | |
Closing Prepaid Rent | - | |
Opening Prepaid Rent | (5,600) | |
Amortization expense | (2,200) | |
Depreciation expense-Building | (5,500) | |
Depreciation expense-Equipment | (13,000) | |
Depreciation expense-Delivery Equipment | (4,000) | |
Cash paid for operating expenses | 147,600 | |
Net Cash Provided/(Used) by Operating Activities | 155,240 |
The Balance Sheets for Jackson, Inc. for the years ending December 31, 2019 and 2018 are shown below: Dec. 31, 2019 143...
Please help. Question at the bottom of the page. Thanks so much The Balance Sheets for Jackson, Inc. for the years ending December 31, 2019 and 2018 are shown below: Dec 31, 2019 143,290 47,660 (2.300) 4.200 Cash Accounts Receivable Allowance for Doubtful Amounts Prepaid Insurance Prepaid Rent Inventories Land Buildings Equipment Delivery equipment Less: Accumulated Depreciation Buildings Equipment Delivery Equipment Patents Dec 31, 2018 B8.300 40,500 (2.200) 3,200 5,600 58,200 80.000 175,000 74,000 29.000 70,960 100.000 175,000 74,000 48,000...
Which ones are Non Cash Transaction and where do I put them in the income in the schedule. Thank you The Balance Sheets for Jackson, Inc. for the years ending December 31, 2018 and 2017 are shown below Dec Cash Accounts Receivable Allowance for Doubtful Amounts Prepaid Insurance Prepaid Rent Inventories Land Dec. 31, 2017 88,300 40,500 (2,200) 3,200 1940 . 45,500 1,900 70,960 61.200 Equipment Delivery equipment 175,000 74,000 48,000 74,000 29.000 Less: Accumulated Depreciation Buildings Equipment Delivery Equipment...
CRUZ, INC Comparative Balance Sheets December 31, 2019 2019 2018 $ 94,800 41.000 85,800 5,400 227,000 109,000 (17,000) $319,000 $ 24,000 51.000 95,800 4,200 175,000 119,000 (9.000) $285,000 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 15,000 $ 21.000 9,000 5,000...
1. You have been assigned to examine the financial statements of Jackson Inc. for the year ended December 31, 2019. You discover the following situations in February 2020. Jackson Inc. has not accrued salaries payable at the end of each of the last 3 years, as follows. Salaries are expensed when paid. December 2017 $5,500 December 2018 $7,800 December 2019 $0 2) The physical inventory count has been incorrectly counted resulted in the following errors. December 2017 Overstated $20,000...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 58,000 Accounts receivable 52,000 Inventories 93,000 Prepaid rent for the next 8 months 34,000 Marketable securities (short term) 28,000 Machinery 235,000 Accumulated depreciation—machinery $ 29,000 Patent (net of amortization) 97,000 Accounts payable 17,000 Wages payable 13,000 Taxes payable 50,000 Bonds payable (due in 10 years) 250,000 Common stock 160,000 Retained earnings 78,000 Totals $ 597,000 $ 597,000 Required: Prepare a...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 46,000 Accounts receivable 40,000 Inventories 81,000 Prepaid rent for the next 8 months 22,000 Marketable securities (short term) 16,000 Machinery 175,000 Accumulated depreciation—machinery $ 17,000 Patent (net of amortization) 85,000 Accounts payable 11,000 Wages payable 7,000 Taxes payable 38,000 Bonds payable (due in 10 years) 200,000 Common stock 160,000 Retained earnings 32,000 Totals $ 465,000 $ 465,000 Required: Prepare a...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 43,000 Accounts receivable 37,000 Inventories 78,000 Prepaid rent for the next 8 months 19,000 Marketable securities (short term) 13,000 Machinery 160,000 Accumulated depreciation—machinery $ 14,000 Patent (net of amortization) 82,000 Accounts payable 9,500 Wages payable 5,500 Taxes payable 35,000 Bonds payable (due in 10 years) 170,000 Common stock 130,000 Retained earnings 68,000 Totals $ 432,000 $ 432,000 Required: Prepare a...
8. Below is an alphabetical listing of the accounts of Walkers, Inc. as of December 31, 2016. Accounts payable Investment in securities available for sale Accounts receivable Land Accumulated depreciation: Notes payable (due 2017) buildings and equipment Office supplies Additional paid-in capital on common stock Patents Allowance for doubtful accounts Prepaid insurance Bonds payable (due 2018) Retained earnings Buildings and equipment Salaries payable Cash Taxes payable Common stock, $5 par Treasury stock Discount on bonds payable Unearned rent Dividends payable...
Comparative Balance Sheets December 31, 2018 and 2019 Assets 2019 2018 Cash 78,000 63,500 Accounts receivable (net) 90,800 89,500 Merchandise inventory 63,900 71,600 Property, plant, and equipment (net) 718,500 813,800 Total assets $951,200 $1,038,400 Liabilities and Stockholders' Equity Accounts payable 153,200 155,600 Bonds payable 135,000 195,000 Common stock, $10 par value 320,000 290,000 Retained earnings 343,000 397,800 Total liabilities and stockholders' equity $951,200 $1,038,400 Use the above comparison Balance Sheet to Calculate the following for both 2019 and 2018. Make...
The following is the comparative balance sheet as of December 31, 2019 and 2018 and the income statement for the year ended December 31, 2019 for Lynbrook Inc.: Lynbrook Inc. Comparative Balance Sheet December 31, 2019 and 2018 Assets: 2019 2018 Cash $ 39 $ 81 Accounts receivable 640 588 Inventory 650 610 Total current assets 1,329 1,279 Property, Plant & Equipment 1,505 1484 Less: Accumulated depreciation (770) (651) Net Property, Plant & Equipment 735 833 Total Assets $ 2,064...