Prepare a statement of cash flows for the jeter corporation

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Reference no: EM13327221

Problem

Given is the Income Statement for the year ended December 31, 2010, Statement of Retained Earnings for the year ended December 31, 2010 and Comparative Balance Sheets for 2009 and 2010 of Jeter Corporation:

JETER CORPORATION
Income Statement
For the Year Ended December 31, 2010

  Sales

$

4,240,000  

  Cost of goods sold

 

2,810,000  

 



     Gross profits

 

1,430,000  

  Selling and administrative expense

 

738,000  

  Depreciation expense

 

236,000  

 



     Operating income

 

456,000  

  Interest expense

 

88,000  

 



     Earnings before taxes

 

368,000  

  Taxes

 

173,000  

 



     Earnings after taxes

 

195,000  

  Preferred stock dividends

 

10,000  

 



  Earnings available to common stockholders

$

185,000  

  Shares outstanding

 

150,000  

  Earnings per share

$

1.23  

Statement of Retained Earnings
For the Year Ended December 31, 2010

  Retained earnings, balance, January 1, 2010

$

320,500  

     Add: Earnings available to common stockholders, 2010

 

185,000  

     Deduct: Cash dividends declared and paid in 2010

 

181,000  

  Retained earnings, balance, December 31, 2010

$

324,500  

Comparative Balance Sheets
For 2009 and 2010

 

 Year-End
2009

 

Year-End
2010 

  Assets

 

 

 

 

 

  Current assets:

 

 

 

 

 

     Cash

$

113,000  

 

$

481,600  

     Accounts receivable (net)

 

563,000  

 

 

607,000  

     Inventory

 

602,000  

 

 

664,000  

     Prepaid expenses

 

60,900  

 

 

30,900  

 



 



       Total current assets

 

 1,338,900  

 

 

1,783,500  

     Investments (long-term securities)

 

91,600  

 

 

89,600  

     Plant and equipment

 

2,520,000  

 

 

2,640,000  

     Less: Accumulated depreciation

 

1,940,000  

 

 

2,176,000  

 



 



     Net plant and equipment

 

580,000  

 

 

464,000  

 



 



  Total assets

$

2,010,500  

 

$

2,337,100  

 





 





  Liabilities and Stockholders' Equity

 

 

 

 

 

  Current liabilities:

 

 

 

 

 

     Accounts payable

$

342,000  

 

$

581,000  

     Notes payable

 

548,000  

 

 

548,000  

     Accrued expenses

 

75,000  

 

 

51,600  

 



 



       Total current liabilities

 

965,000  

 

 

1,180,600  

  Long-term liabilities:

 

 

 

 

 

     Bonds payable, 2015

 

135,000  

 

 

242,000  

 



 



       Total liabilities

 

1,100,000  

 

 

1,422,600  

  Stockholders' equity:

 

 

 

 

 

     Preferred stock, $100 par value

 

90,000  

 

 

90,000  

     Common stock, $1 par value

 

150,000  

 

 

150,000  

     Capital paid in excess of par

 

350,000  

 

 

350,000  

     Retained earnings

 

320,500  

 

 

 324,500  

 



 



       Total stockholders' equity

 

910,500  

 

 

914,500  

 



 



  Total liabilities and stockholders' equity

$

2,010,500  

 

$

2,337,100  

 





 





Prepare a statement of cash flows for the Jeter Corporation.

Reference no: EM13327221

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