Joe and Jim have collected the following data for their partnership. Prepare a C
ID: 2650180 • Letter: J
Question
Joe and Jim have collected the following data for their partnership. Prepare a Cash Flow statement.
Data Block
Beginning of year
End of year
Cash On Hand
$120,000
Equipment Purchase
$120,000
Net Capital gains equipment)
$24,000
(Taxes have been deducted)
Net Income
$7,000
Raw Materials Inventory
$6,000
$5,500
In-Process Inventory
$5,000
$4,000
Finished Inventory
$8,000
$8,200
Accounts Receivable
$4,000
$4,100
Accounts Payable
$3,800
$3,900
Loan principal Payment
$200,000
New Loan received
$150,000
Stock Sold
$75,000
Depreciation
$40,000
Dividends Paid
$100,000
Data Block
Beginning of year
End of year
Cash On Hand
$120,000
Equipment Purchase
$120,000
Net Capital gains equipment)
$24,000
(Taxes have been deducted)
Net Income
$7,000
Raw Materials Inventory
$6,000
$5,500
In-Process Inventory
$5,000
$4,000
Finished Inventory
$8,000
$8,200
Accounts Receivable
$4,000
$4,100
Accounts Payable
$3,800
$3,900
Loan principal Payment
$200,000
New Loan received
$150,000
Stock Sold
$75,000
Depreciation
$40,000
Dividends Paid
$100,000
Explanation / Answer
Answer:
Particulars Amount ($) Cash flow from operating activities: Net income 7000 Adjustment: Depreciation 40000 Dec in Raw Materials Inventory 500 Dec in In-Process Inventory 1000 purchase of Finished Inventory -75200 Inc in Accounts Receivable -100 Inc in Accounts Payable 100 Sale of stock 75000 Net Capital gains equipment -24000 Cash flow from operating activities (A) 24300 Cash flow from investing activities: Purchase of equipment -120000 Sale of equipment 144000 Cash flow from investing activities(B) 24000 Cash flow from financing activities: Dividend paid -100000 New Loan received 150000 Loan principal Payment -200000 Cash flow from financing activitiesRelated Questions
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