Reference no: EM132652993
Question - David Jones owns a small trucking operations. The bookkeeper presented Jones with the following income statements and balance sheets for 2012 and 2013.
Income Statement
2013 2012
Revenues $191,400 $182,600
Operating Expenses:
Depreciation $26400 $26400
Fuel $77000 $46200
Drivers' salaries $44,000 $35,200
Tax and license's $22,000 $17,600
Repairs $30,800 $19,800
Miscellaneous $2200 $ 202 400 $ 1 100 $ 146 300
Income (loss) ($11,000) $36,300
Balance Sheets 2013 2012
Cash $22,000 $4,400
Accounts receivable $8800 $ 26,400
Net fixed assets $198,000 $224,400
Total Assets $228,800 $255,200
Accounts payable $30,800 $22,000
Accrued salaries $8800 $5,500
Other accruals $3,300 $1,100
Long term debt $100,100 $129,800
Jones, capital $85,800 $96,800
Total Liabilities $228,800 $255,200
Jones does not understand how the company can be $17 ,600 ahead of last year in terms of cash on hand and yet show an $11,000 loss for the year.
Required - Prepared a Cash Flow statement (indirect heat method) to use in explaining this to David Jones.