The Jasper Corporation provides you with the following information for the year
ID: 2438447 • Letter: T
Question
The Jasper Corporation provides you with the following information for the year ended 12/31/17:
Income Statement Information:
Sales revenue $ 300,000
Cost of goods sold 80,000
Gross margin 220,000
Depreciation expense 47,000
Uncollectible accounts expense 1,500
Pension expense 19,000
Other expense 25,500
Interest expense 3,000
Gain on the sale of equipment (2,000)
Income tax expense 65,000 159,000
Net Income $ 61,000
Balance Sheet Information
12/31/16 12/31/17
Cash $ 16,000 $ 36,000
Accounts Receivable 56,000 52,000
Allowance for Doubtful Accounts (6,000) (5,000)
Inventory 83,000 84,000
Equipment 85,000 82,000
Accumulated Depreciation (6,000) (7,000)
Total $228,000 $242,000
Accounts Payable $ 36,000 $ 46,000
Income Taxes Payable 66,000 48,000
Interest Payable 2,000 1,000
Notes Payable, long term 30,000 0
Accrued Pension Liability 4,000 2,000
Deferred Tax Liability 14,000 18,000
Common Stock, no par 70,000 80,000
Retained Earnings 6,000 47,000
Total $228,000 $242,000
Additional Information:
Equipment costing $66,000 was sold. New equipment was purchased, and $10,000 of common stock was issued in partial payment for the new equipment.
a. Prepare a Statement of Cash Flows for Jasper Corporation for 2017 using the direct method. You must prepare all supplementary schedules that would be required disclosures under the direct method.
Show all work including formulas.
Explanation / Answer
5000
INCOME TAX PAYABLE BY OP 66000 CASH PAID 83000 I.TAX 65000 CL 48000 131000 131000 INTEREST PAYABLE BY OP 2000 CASH 4000 INT 3000 TO CL 1000 5000 5000 A/C RECEIVABLE OP 56000 SALES 300000 CASH 304000 BY CLO 52000 356000 356000 A/C PAY BY OP 36000 CASH 71000 PUR 81000 CL 46000 117000 117000 0 EQUIPMENT OP 85000 SOLD 66000 PUR 63000 CL 82000 148000 148000 RETAINED EARNING OP 6000 DIVIDEND 20000 61000 CL 47000 67000 670005000
COGS OP STOCK 83000 ADD: PUR 81000 LESS: CL STOCK -84000 COGS 80000 CASH FLOW STATEMENTS CASH FLOW FROM OPERATING ACTIVITIES: AMOUNT IN $ CASH RECEIPTS FROM CUSTOMERS 304000 CASH PAID TO SUPPLIERS -71000 PENSION PAID -21000 -70000 LESS: INTEREST PAID -4000 INCOME TAX PAID -83000 NET CASH FROM OPERATIONS 55000 CASH FLOW FROM INVESTING ACTIVITIES EQUIPMENT PURCHASED -63000 EQUIPMENT SOLD 68000 5000 CASH FLOW FROM FINANCING ACTIVITIES NOTES PAYABLE REDEEMED -30000 ISSUE OF COMMON STOCK 10000 DIVD -20000 -40000 CASH AND CASH EQUIVALENT 20000 ADD: OPENING CASH 16000 CLOSIN CASH BALANCE 36000Related Questions
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