help is this correct Jackson, Inc. Statement of Cash Flows Year Ended December 3
ID: 2586006 • Letter: H
Question
help is this correct
Jackson, Inc.
Statement of Cash Flows
Year Ended December 31, 2016
Cash Flows from Operating Activities:
Net Income
68,500.00
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
Gain on Sale of Building
(5.500)
Depreciation Expense
20,000
Decrease in Accounts Receivable
5100
Increase in Merchandise Inventory
(10,000)
Increase in Accounts Payable
2900
12500.00
Net Cash Provided by (Used for) Operating Activities
81000
Cash Flows from Investing Activities:
Gain on Sale of Building
65500
Cash Payment for Acquisition of Equipment
(71,000)
Net Cash Provided by (Used for) Investing Activities
(5500)
Cash Flows from Financing Activities:
Cash Receipt from Issuance of Common Stock
36,000
Cash Payment of Notes Payable
(41,100)
Cash Payment of Dividends
(46,000)
Cash Receipt from Sale of Building
60,000
Net Cash Provided by (Used for) Financing Activities
61900
Net Increase (Decrease) in Cash
218400
Cash Balance, December 31, 2015
25,000
Cash Balance, December 31, 2016
105800
Non-cash Investing and Financing Activities:
Acquisition of Land by Issuing Long-term Notes Payable
113,000
Total Non-cash Investing and Financing Activities
113,000
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2016
2015
Current Assets:
Cash
$105,800
$25,000
Accounts Receivable
63,900
69,000
Merchandise Inventory
86,000
76,000
Current Liabilities:
Accounts Payable
$58,100
$55,200
Income Tax Payable
14,300
16,900
Transaction Data for 2016:
Issuance of common stock for cash
$36,000
Payment of notes payable
$41,100
Depreciation expense
20,000
Payment of cash dividends
46,000
Purchase of equipment with cash
71,000
Issuance of notes payable to borrow cash
59,000
Acquisition of land by issuing long-term notes payable
113,000
Gain on sale of building
5,500
Book value of building sold
60,000
Net income
68,500
Jackson, Inc.
Statement of Cash Flows
Year Ended December 31, 2016
Cash Flows from Operating Activities:
Net Income
68,500.00
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
Gain on Sale of Building
(5.500)
Depreciation Expense
20,000
Decrease in Accounts Receivable
5100
Increase in Merchandise Inventory
(10,000)
Increase in Accounts Payable
2900
12500.00
Net Cash Provided by (Used for) Operating Activities
81000
Cash Flows from Investing Activities:
Gain on Sale of Building
65500
Cash Payment for Acquisition of Equipment
(71,000)
Net Cash Provided by (Used for) Investing Activities
(5500)
Explanation / Answer
CASH FLOW STATEMENT
PARTICULARS
AMOUNT
AMOUNT
AMOUNT
NET INCOME
68500
CASH FLOW FROM OPERATING ACTVITIES:
DEPRECIATION EXPENSE
20000
GAIN ON SALE OF BUILDING
(5500)
DECREESE IN RECEIVABLE
5100
INCREASE IN INVENTORY
(10000)
INCRESE IN PAYABLE
2900
DECERESE IN TAX PAYABLE
(2600)
9900
CASH FLOW FROM OPERATING ACTIVITIES
78400
CASH FLOW FROM INVESTING ACTIVITIES :
PURCHASE OF EQUIPMENT
(71000)
SALE OF BUILDING
65500
CASH FLOW FROM INVESTING ACTIVITIES
(5500)
CASF FLOW FROM FINANCING ACYTIVIVITIES:
ISSUE OF COMMON STOCK
36000
PAYMENT OF NOTES PAYABLE
(41100)
CASH DIVIDEND
(46000)
CASH BORROWED
59000
7900
NET INCREASE IN CASH
80800
ADD :OPERNING CASH
25000
CASH BALANCE AT 2016
105800
CASH FLOW STATEMENT
PARTICULARS
AMOUNT
AMOUNT
AMOUNT
NET INCOME
68500
CASH FLOW FROM OPERATING ACTVITIES:
DEPRECIATION EXPENSE
20000
GAIN ON SALE OF BUILDING
(5500)
DECREESE IN RECEIVABLE
5100
INCREASE IN INVENTORY
(10000)
INCRESE IN PAYABLE
2900
DECERESE IN TAX PAYABLE
(2600)
9900
CASH FLOW FROM OPERATING ACTIVITIES
78400
CASH FLOW FROM INVESTING ACTIVITIES :
PURCHASE OF EQUIPMENT
(71000)
SALE OF BUILDING
65500
CASH FLOW FROM INVESTING ACTIVITIES
(5500)
CASF FLOW FROM FINANCING ACYTIVIVITIES:
ISSUE OF COMMON STOCK
36000
PAYMENT OF NOTES PAYABLE
(41100)
CASH DIVIDEND
(46000)
CASH BORROWED
59000
7900
NET INCREASE IN CASH
80800
ADD :OPERNING CASH
25000
CASH BALANCE AT 2016
105800
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