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Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021

Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.17E
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Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021 using the following info: Income Statement Sales Revenue Cost of goods sold Gross profit Operating expenses Depreciation expense Operating income Other revenues and losses Loss on sale of equipment Gain on sale of building Total other revenues and losses Income before income taxes Income tax expense Net Income Comparative Balar Account Cash Accounts Receivable Inventory Accounts Payable Salaries Payable $1,100,000 600,000 500,000 100,000 20,000 380,000 (10,000) 20,000 10,000 $ 480,000 96,000 $384,000 Sheets (selected accounts) 2021 $ 568,000 60,000 20,000 30,000 6,000 2020 $80,000 30,000 45,000 50,000 2,000 Other information: 1. Equipment was sold for $5,000 cash that resulted in a loss of $10,000 as noted above in the Income Statement info. 2. A building was sold for $150,000 cash that resulted in a gain of $20,000 as noted above in the income statement info. 3. Equipment was purchased costing $50,000. A down payment was made for $20,000 cash and the company issued a note's payable for the remaining balance. 4. Equipment was purchased costing $30,000 and was paid with cash. 5. A cash dividend was declared and paid in 2021 of $40,000. 6. A $60,000 cash dividend was declared in December 2021 payable in January 2022. 7. A 5% stock dividend was issued in 2021. Retained earnings was debited for $50,000. 8. 1,000 shares of $10 par common stock was issued in 2021 in exchange for equipment. The cost recorded for the equipment was $50,000. 9. 1,000 shares of common stock were issued in 2021 for $100,000 cash. 10. The company purchased shares of its own stock as Treasury Stock and paid $50,000 cash.
Transcribed Image Text:Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021 using the following info: Income Statement Sales Revenue Cost of goods sold Gross profit Operating expenses Depreciation expense Operating income Other revenues and losses Loss on sale of equipment Gain on sale of building Total other revenues and losses Income before income taxes Income tax expense Net Income Comparative Balar Account Cash Accounts Receivable Inventory Accounts Payable Salaries Payable $1,100,000 600,000 500,000 100,000 20,000 380,000 (10,000) 20,000 10,000 $ 480,000 96,000 $384,000 Sheets (selected accounts) 2021 $ 568,000 60,000 20,000 30,000 6,000 2020 $80,000 30,000 45,000 50,000 2,000 Other information: 1. Equipment was sold for $5,000 cash that resulted in a loss of $10,000 as noted above in the Income Statement info. 2. A building was sold for $150,000 cash that resulted in a gain of $20,000 as noted above in the income statement info. 3. Equipment was purchased costing $50,000. A down payment was made for $20,000 cash and the company issued a note's payable for the remaining balance. 4. Equipment was purchased costing $30,000 and was paid with cash. 5. A cash dividend was declared and paid in 2021 of $40,000. 6. A $60,000 cash dividend was declared in December 2021 payable in January 2022. 7. A 5% stock dividend was issued in 2021. Retained earnings was debited for $50,000. 8. 1,000 shares of $10 par common stock was issued in 2021 in exchange for equipment. The cost recorded for the equipment was $50,000. 9. 1,000 shares of common stock were issued in 2021 for $100,000 cash. 10. The company purchased shares of its own stock as Treasury Stock and paid $50,000 cash.
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