Table 1 Jones Company Financial Information December 2008 December 2009 Net inco
ID: 2651106 • Letter: T
Question
Table 1
Jones Company Financial Information
December 2008
December 2009
Net income
$1,500
$3,000
Accounts receivable
750
750
Accumulated depreciation
1,125
1,500
Common stock
4,500
5,250
Paid-in capital
7,500
8,250
Retained earnings
1,500
2,250
Accounts payable
750
750
Based on the information in Table 1, calculate the after tax cash flow from operations for 2009 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable)
$4,500
$3,375
$3,900
$2,980
December 2008
December 2009
Net income
$1,500
$3,000
Accounts receivable
750
750
Accumulated depreciation
1,125
1,500
Common stock
4,500
5,250
Paid-in capital
7,500
8,250
Retained earnings
1,500
2,250
Accounts payable
750
750
Explanation / Answer
Operating income for the year 2009 = 3000
Depreciation for the year 2009 = 1500-1125 i.e 375
Operating cash flow = Operating income + Depreciation
= 3000+375 i.e 3375
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