Table 3-1 Jones Company Financial Information December 2007 December 2008 Net in
ID: 2674922 • 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 flow 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
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