Partial information from the comparative balance sheet ofJackson Company as of December 31, 2020...

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Accounting

Partial information from the comparative balance sheet ofJackson Company as of December 31, 2020 and 2019 reflected thefollowing selected account balances. From the information containedon the balance sheet and the additional information below, preparethe Net Cash Flows from Operating activities to answer thefollowing two questions.
Jackson Company
Comparative Balance Sheet Partial Information
                                                           2020                2019
Current Assets:
Cash                                                $114,000         $100,000
Accountsreceivable                           18,400             20,700
Inventory                                            62,200             59,600
Current Liabilities:
Accountspayable                               29,300             26,600
Accruedliabilities                                9,700             10,100
Additional information:
Netincome                                                      69,000
Depreciationexpense                                        8,000
Question:
What is the amount of the total adjustments tonet income (total of the adjustments column)?
a.
$10,800
b.
$12,400
c.
$10,000
d.
$7,700
See the previous question. How much is the net cashflows from operating activities?
a.
$79,000
b.
$64,000
c.
$8,400
d.
$12,400

Answer & Explanation Solved by verified expert

3.9 Ratings (486 Votes)

Question 1

Correct answer--------------(c) $10,000

Question 2

Correct answer--------------(a) $79,000

Working

Jackson Company
Statement of Cash Flows-Partial
For year Ended December 31 2020
A. Cash Flows from Operating Activity
Net Income		$ 69,000.00
Adjustments to reconcile net income to
net cash flow from operating activities:
Depreciation expense	$ 8,000.00
Changes in current operating assets and liabilities:
Increase in Inventory	$ (2,600.00)
Increase in Accounts Payable	$ 2,700.00
Decrease in Accrued liabilities	$ (400.00)
Decrease in Accounts Receivables	$ 2,300.00
		$ 10,000.00
Net cash flow from Operating activities		$ 79,000.00

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In: AccountingPartial information from the comparative balance sheet ofJackson Company as of December 31, 2020 and...Partial information from the comparative balance sheet ofJackson Company as of December 31, 2020 and 2019 reflected thefollowing selected account balances. From the information containedon the balance sheet and the additional information below, preparethe Net Cash Flows from Operating activities to answer thefollowing two questions. Jackson CompanyComparative Balance Sheet Partial Information 2020 2019Current Assets:Cash $114,000 $100,000Accountsreceivable 18,400 20,700Inventory 62,200 59,600Current Liabilities:Accountspayable 29,300 26,600Accruedliabilities 9,700 10,100Additional information:Netincome 69,000Depreciationexpense 8,000Question:What is the amount of the total adjustments tonet income (total of the adjustments column)?a.$10,800b.$12,400c.$10,000d.$7,700See the previous question. How much is the net cashflows from operating activities?a.$79,000b.$64,000c.$8,400d.$12,400