Table 3-1 Jones Company Financial Information December 2007 December 2008 Net in
ID: 2666987 • Letter: T
Question
Table 3-1Jones Company Financial Information
December 2007 December 2008
Net income $2,000 $5,000
Accounts receivable 750 750
Accumulated depreciation 1,000 1,500
Common stock 4,500 5,000
Paid-in capital 7,500 8,000
Retained earnings 1,500 2,500
Accounts payable 750 750
18) Based on the information in Table 3-1, calculate the after tax cash fl ow from operations
for 2008 (no assets were disposed of during the year, and there was no change
in interest payable or taxes payable).
a. $3,375
b. $3,750
c. $6,500
d. $5,500
Explanation / Answer
net cash flow from operations = 5000 - (750-750) + (1500-1000)+(750-750) = 5500 commn stock,paid in capital and retained earnings are cash flows from financing not operations
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.