Jhutti Company Comparative Balance Sheets December 31 Assets

Jhutti Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Investments Equipment Accumulated depreciation-equipment 2014 $ 90,300 80,900 121,900 84,000 250,000 (46.,600) 2013 47,250 57,000 102,650 87,000 205,000 (40,000) $458,900 $580,500 Liabilities and Stockholders\' Equit Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $ 53,400 12,100 100,000 240,000 175,000 $580,500 $ 48,280 18,830 70,000 200,000 121.790 $458,900 Jhutti Company Incone Statement For the Year Ended December 31, 2014 Sales revenue Gain on disposal of plant assets $297,500 8,550 $306,050 Less: Cost of goods sold Operating expenses (excluding 99,460 depreciation expense) Depreciation expense Income tax expense Interest expense 14,670 47,900 7,270 2,940 172,240 $133,810 Net income Additional Information vestments werie g s02.,00 was purchased for cash during the year. stments were sold at cost. Equipment costing $47,000 was sold for $14,250, resulting in gain of $8,550 A cash dividend of $80,600 was declared and paid during the year Additional Information Continued. Bonds of S30,000 were issued. $40,000 of Common Stock was issued Instructions: Please prepare a proper Statement of Cash Flows for Jhutti Company using the Indirect Method in either Word or Excel. Handwritten copies will not be accepted! Grading Rubric: Operating Activities 3 points, Investing Activities 3 points, Financing Activities 3 points, Layout 1 point.

Solution

Cash flow statement Cash flows from Operating activities: Net income for the period 133810 Adjustment for reconciliation: Depreciation expense 47900 Gain on sale of equipment -8550 Increase in Accounts receivable -23900 Increasse in Inventory -19250 Increase in Accounts payable 5120 Decrease in Accrued expense -6730 Net cash provided from operating activities 128400 Cashh flows from investing activities: Sale of investment 3000 Sale of equipment 14250 Purchase of equipment -92000 Net cash used in investing activities -74750 Cash flows from Financing activities: Issue of bonds payable 30000 Issue of common stock 40000 Dividnd paid -80600 Net cash provided n financing activities -10600 Net cash increase 43050 Beginning balance in cash 47250 Ending balance in cash 90300