In: Accounting
2. Following is comparative balance sheets for Jones Corporation. An income statement appears as well.
Balance Sheet
End of 2007 2008
Cash 50,000 16,000
A/R 60,000 75,000
Inventory 90,000 100,000
Fixed Assets 500,000 700,000
Less Accumulated Depr. 200,000 230,000
Net Fixed Assets 300,000 470,000
Total Assets 500,000 661,000
Accounts Payable 50,000 55,000
Bonds Payable 100,000 90,000
Common Stock 100,000 100,000
Capital paid in excess of Par 75,000 75,000
Retained Earnings 175,000 341,000
Total Liabilities and
Stockholder's Equity 500,000 661,000
Income Statement
SALES $1,000,000
LESS COGS 300,000
GROSS PROFIT 700,000
LESS OPERATING EXPENSES 300,000
LESS DEPRECIATION EXPENSE 30,000
EBIT 370,000
LESS INTEREST EXPENSE 10,000
EBT 360,000
LESS TAXES 144,000
EAT $216,000
ADDITIONAL INFORMATION: Dividends paid totaled $ 50,000.
Statement of Cash Flows
Operating Activities:
NI _
Net Operating Cash Flows ___________________
Investing Activities:
________________ ________________
Net Investing Cash Flows __________________ Financing Activities:
Dividends
Net Financing Cash Flows _________
Net Cash Flows ===================
Prepare the Statement of Cash Flows and analyze the change in cash
flows.