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The Jenkins Corporation prepared the following statement of income and comparative balance sheets: JENKINS CORPORATION Income...

The Jenkins Corporation prepared the following statement of income and comparative balance sheets:

JENKINS CORPORATION

Income Statement

For the Year Ended December 31, 2021

Sales                                                           $975,000

     Less: Cost of Goods Sold                      467,000

Gross Profit                                                   508,000

     Less: Depreciation expense                      68,600

                Other operating expenses                92,500

     Plus:   Gain on Sale of Equipment              55,000

Income Before Taxes                                     401,000

Income Taxes                                                  60,000

Net Income                                                  $341,900

JENKINS CORPORATION

Balance Sheet

December 31

           Assets        2021                     2020

Cash                   $ 133,900           $ 5,400

Accounts Receivable           94,600           74,000

Temporary Investments           30,000           38,000

Merchandise Inventory           356,000           204,000

Property, Plant, and Equipment           400,000           350,000

Less: Accumulated Depreciation              (75,600)     (63,000)

Total Assets           $938,900           $608,400

                Liabilities and Shareholders' Equity

Accounts Payable           $ 85,000           $109,400

Other Accrued Payables           62,000           79,000

Bonds Payable           140,000           140,000

Common Shares           310,000           210,000

Retained Earnings           341,900               70,000

Total Liabilities & Shareholders' Equity           $938,900           $608,400

Additional data:

(1) Cash dividends of $70,000 were paid in 2021.

(2) Equipment that initially cost $140,000 was sold for $139,000 in 2021.

(3) In 2021, the company issued common shares for cash of $100,000.

Required:
Prepare a Cash Flow Statement for the year ended December 31, 2021.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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