How to get the number of operating activities and investing and financing activi

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How to get the number of operating activities and investing and financing activies??

amison Corp.'s balance sheet accounts as of December 31, 2011 and 2010 and information relating to 2011 activities are presented below. 2011 Assets Cash Short-term investments Accounts receivable (net) Inventory s 440,000 200,000 600,000 1,020,000 1,380,000 400,000 1,020,000 1,200,000 out Long-term investments 600,000 Plant assets Accumulated depreciation Patent 2,000,000 3,400,000 (900,000) 180,000 $6,520,000 (900,000) 200,000 Total assets iabilities and Stockholders' Equity Accounts payable and accrued liabilities Notes payable (nontrade) Common stock, $10 par Additional paid-in capital Retained earnings $1,660,000 580,000 1,600,000 800,000 880,000 $1,440,000 1,400,000 500,000 980.000 Total liabilities and stockholders' equity $6,520,000 $4320.000 Information relating to 2011 activities: Net income for 2011 was $1,500,000. e Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2011 .A long-term investment was sold in 2011 for $320,000. There were no other transactions · 20,000 shares ofcommon stock were issued in 2011 for $25 a share. Cash dividends of $600,000 were declared and paid in 2011 for $360,000 affecting long-term investments in 2011 Short-term investments consist of treasury bills maturing on 6/30/12 Net cash provided by Jamison's 2011 operating activities was: (S360,000- S320,000) + $1,500,000 $180,000+ (8900,000 S900,000+S680,000) $20,000 + $220,000-($320,000-$200,000) = $2,080,000. Net cash used in Jamison's 2011 investing activities was: $320,000 + $360,000-($3,400,000 + $ 1,000,000-$2,000,000) _ $600,000 = $2.320,000. Net cash provided by Jamison's 2011 financing activities was: 20,000 × $25 $500,000: $500,000 + $580,000-$600,000 = $480,000

Explanation / Answer

Jamison Corp Statement of Cash Flows For the year ended December 31, 2011 Amount $ Operating Activities Net Income 15,00,000 Adjustments: Non-Cash adjustment: Depreciation (900000+(1000000-320000)-900000) 6,80,000 Amortization of patent (200000-180000) 20,000 Gain on sale of equipment (360000-320000)        -40,000 Gain on sale of long-term investments (320000-(600000-400000)     -1,20,000 Due to changes in Working capital Due to changes in accounts receivable 0 Due to changes in Inventories (1380000-1200000)     -1,80,000 Due to changes in accounts payable & accruals (1660000-1440000)      2,20,000 Due to changes in accruals Taxes paid Net Cash provided (used) by operating activities    20,80,000 Investing Activities Cash used to acquire Plant assets (3400000+1000000-2000000) -24,00,000 Cash receiptd from sale of equipment      3,60,000 Due to change in long-term investments      3,20,000 Due to change in short-term investments     -6,00,000 Net cash provided (used) by investing activities -23,20,000 Financing Activities Due to change in notes payable      5,80,000 Due to change in common stock (20000*25)      5,00,000 Payment of common dividends     -6,00,000 Net cash provided (used) by investing activities)      4,80,000 Net increase/decrease in cash      2,40,000 Add: Cash balance at the begining of the year      2,00,000 Cash balance at the end of the year      4,40,000

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