Managerial Accounting: P24-3A The condensed income statement and comparative balance sheet

Managerial Accounting

P24-3A Prepare a statement of cash flows.
The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2013 and 2012, are provided below. Other financial data is also given.
Jackson Corporation
Condensed Income Statement
Year Ended December 31, 2013
Revenues 675,500
Costs and Expenses
Cost of goods sold 429,000
Salaries expense 125,000
Depreciation expense 15,000
Advertising expense 14,900
Utilities expense 18,000
Total costs and expenses 601,900
Net income before income taxes 73,600
Income taxes expense 18,400
Net income after income tax $55,200

Jackson Corporation
Comparative Balance Sheet
December 31, 2013 and 2012
Assets 2013 2012
Cash 81,000 70,000
Accounts receivable (net) 55,650 52,000
Merchandise Inventory 49,000 54,000
Prepaid advertising 8,000 10,000
Property, Plant and Equipment 120,000 100,000
Less: Accumulated depreciation (25,000) (10,000)
Total Assets $288,650 $276,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable 50,450 79,000
Salaries payable 4,500 3,500
Unearned Revenues 4,000 5,000
Income Taxes Payable 6,000 5,000
Notes payable, 2015 - 30,000
Total Liabilities 64,950 122,500
Stockholders' Equity
Common Stock, $2 par 75,000 50,000
Retained Earnings 148,700 103,500
Total Stockholders' Equity 223,700 153,500
Total Liabilities & Stockholders' Equity $288,650 $276,000

Instructions:
Prepare a statement of cash flows for Jackson Corporation for 2013. Additional information for the year that is pertinent to its preparations follow:
a. No items of property, plant and equipment were disposed of during the year.
b. Paid cash for the additions to property, plant and equipment during the year.
c. Paid $10,000 dividends on the common stock in cash during the year.
d. Issued common stock at par value for cash.
e. Paid cash to retire the long-term note payable.
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