Solution-Prepare a statement of cash flows for the jeter

Prepare a statement of cash flows for the jeter corporation

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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Prepare a statement of cash flows for the jeter corporation

Reference no: EM13327221

Reference no: EM13327221

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