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Table 3-1 Jones Company Financial Information December 2009 December 2010 Net In

ID: 2754940 • Letter: T

Question

Table 3-1

Jones Company

Financial Information

December 2009

December 2010

Net Income

$2,000

$4,000

Accounts receivable

750

950

Accumulated depreciation

1,000

1,500

Common stock

4,500

5000

Paid-in capital

7,500

8500

Retained earnings

1,500

3,500

Accounts payable

750

       $4,000.
       $4,950.
       $5,800.
       $5,500.

750

December 2009

December 2010

Net Income

$2,000

$4,000

Accounts receivable

750

950

Accumulated depreciation

1,000

1,500

Common stock

4,500

5000

Paid-in capital

7,500

8500

Retained earnings

1,500

3,500

Accounts payable

750

Based on the information in Table 3-1, the change in cash for 2010 is

       $4,000.
       $4,950.
       $5,800.
       $5,500.

750

Explanation / Answer

A)Cash flow from operating activity Net Income $2,000 Add: Depn $1,500 Less: Account rec -$200 Less: Common Stock -$500 Cah flow from operating activety(A) $2,800 B)Cash flow from Financing Activity Paid in capital $1,000 Retained Earning $2,000 Cash flow from Financing Activity(B) $3,000 Total Cash flow(A+B) $5,800