BUSINESS

PROBLEM 4

 

Here are comparative balance sheets for Tom Jones Company.

 

 

 

TOM JONES COMPANY
Comparative Balance Sheets
December 31
Assets 2010   2009
Cash $72,710   $22,001
Accounts receivable 85,652   76,161
Inventories 169,800   188,601
Land 75,070   100,300
Equipment 259,540   200,580
Accumulated depreciation (65,861)   (32,198)
     Total $596,911   $555,445
       
Liabilities and Stockholders’ Equity    
Accounts payable $39,209   $46,636
Bonds payable 151,530   203,230
Common stock ($1 par) 214,140   175,750
Retained earnings 192,032   129,829
     Total $596,911   $555,445

 

Additional information:

 

  1. Net income for 2010 was $101,690, depreciation was $33,663.
  2. Cash dividends of $39,487 were declared and paid.
  3. Bonds payable amounting to $51,700 were redeemed for cash $51,700.
  4. Common stock was issued for $38,390 cash.
  5. Land was sold for $25,230 cash, there was no loss.
  6. Equipment was purchased for $58,960 cash.

 

Instructions

Prepare a statement of cash flows for 2010 using the indirect method. Use the template provided on the next page.

 

TOM JONES COMPANY

Statement of Cash Flows

For the Year Ended December 31, 2010

 
 

Cash flows from operating activities

 
Net income

 

   
Adjustments to reconcile net income to

net cash provided by operating activities:

 
 

 

     
 

 

     
 

 

     
       
 

 

     
            Net cash provided by operating activities

 

     
 

Cash flows from investing activities

 
     
     
                        Net cash provided by investing activities    
 

Cash flows from financing activities

   
     
     
     
                        Net cash used by financing activities    
Net Increase in cash    
Cash at beginning of period    
Cash at end of period    
     
  • Posted: 5 Years Ago
  • Due: 
  • Budget: $50

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