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.