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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

Choose from any list or enter any number in the input fields and then continue to the next question.

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