Computing the change in cash; identifying non-cash transactions Jennifer’s Wedding Shops earned a net income of $27,000, which included depreciation of $16,000. Jennifer’s acquired a $119,000 building by borrowing $119,000 on a long-term note payable. Requirements How much did Jennifer’s cash balance increase or decrease during the year? Were there any non-cash transactions for the company? If so, show how they would be reported in the statement of cash flows.

Question

Computing the change in cash; identifying non-cash transactions

Jennifer’s Wedding Shops earned a net income of $27,000, which included depreciation of $16,000. Jennifer’s acquired a $119,000 building by borrowing $119,000 on a long-term note payable.

Requirements

  1. How much did Jennifer’s cash balance increase or decrease during the year?
  2. Were there any non-cash transactions for the company? If so, show how they would be reported in the statement of cash flows.

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Cash Flow Statements

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