Question

jvc Company reports the following information on its 2017 end-of-year financial statements. Assume any increases/decreases to the Balance Sheet accounts were a result of cash transactions.

What is jvC Company’s Cash flow from financing activities?

jvC Company
Balance Sheets
On December 31, 20XX
Assets		2017		2016
Cash and Cash Equivalents		$84,000		$48,700
Accounts Receivable		53,600		50,000
Inventory		39,600		39,000
Prepaid Expenses		5,500		15,000
Equipment		206,000		200,000
Accumulated Depreciation		-126,700		-117,700
Total assets		$262,000		$235,000
		2017		2016
Liabilities and Stockholders' Equity
Accounts Payable		$48,000		$49,000
Accrued Liabilities		44,000		42,000
Common Stock		10,000		9,000
Retained Earnings		160,000		135,000
Total Liabilities and Stockholders'
Equity		$262,000		$235,000

			jvC Company
			Income Statement
		For the Period Ended December 31, 2017
	Sales Revenue				$636,000
	Cost of Goods Sold				240,000
	Gross Profit				$396,000
	Office Expenses				242,000
	Depreciation Expense				9,000
	Income from Operations				145,000
	Interest Expense				0
	Income before Income Taxes				145,000
	Income Tax Expense				120,000
	Net Income				25,000

($1,000)

$1,000

$7,000

$26,000

None of these answers are correct.

Answer 1

	Ans	$                                                                                                                   1,000.00
		JVC Company
		Cash Flow from financing activities
		Issue of Common stock=($10000-$9000)		$                                                    1,000.00
		Net Cash provided by Financing Activities(C )			$                                1,000.00
		Beginning Retained Earnings	$   1,35,000.00
		Add: Net Income	$      25,000.00
		Less:Dividend Paid	$                      -
		Ending Retained Earnings	$   1,60,000.00