The Jasper Corporation provides you with the followinginformation for the year ended 12/31/17: &nThe Jasper...

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Accounting

The Jasper Corporation provides you with the followinginformation for the year ended 12/31/17:
                                                            IncomeStatement Information:
                          Salesrevenue $ 300,000
                          Costof goods sold 80,000
                          Grossmargin 220,000
                          Depreciationexpense 47,000
                          Uncollectibleaccounts expense 1,500
                          Pensionexpense 19,000
                          Otherexpense 25,500
                          Interestexpense 3,000
                          Gainon the sale of equipment (2,000)
                          Incometax expense 65,000 159,000
                                NetIncome $   61,000

                                                               BalanceSheet Information
                                                                                   12/31/16           12/31/17
Cash $16,000      $  36,000
                    AccountsReceivable                                 56,000               52,000
                    Allowancefor DoubtfulAccounts                 (6,000)              (5,000)
                    Inventory                                                   83,000               84,000
                    Equipment                                                85,000               82,000
                    AccumulatedDepreciation                         (6,000)                (7,000)
                             Total                                             $228,000            $242,000
                    AccountsPayable                                   $36,000            $46,000
                    IncomeTaxesPayable                              66,000               48,000
                    InterestPayable                                          2,000                 1,000
                    NotesPayable, longterm                           30,000                     0
                    AccruedPensionLiability                             4,000                 2,000
                    DeferredTaxLiability                                 14,000               18,000
                    CommonStock, nopar                               70,000               80,000
                    RetainedEarnings                                       6,000                47,000
                             Total                                             $228,000            $242,000
            AdditionalInformation:
Equipment costing $66,000 wassold.  New equipment was purchased, and $10,000 of commonstock was issued in partial payment for the new equipment.
a. Prepare a Statement of Cash Flows for Jasper Corporation for2017 using the direct method. You must prepare all supplementaryschedules that would be required disclosures under the directmethod.
Show all work including formulas.

Answer & Explanation Solved by verified expert

4.4 Ratings (951 Votes)

CASH FLOW STATEMENTS

CASH FLOW FROM OPERATING ACTIVITIES:

AMOUNT IN $

CASH RECEIPTS FROM CUSTOMERS

304000

CASH PAID TO SUPPLIERS

-71000

PENSION PAID

-21000

-70000

LESS:

INTEREST PAID

-4000

INCOME TAX PAID

-83000

NET CASH FROM OPERATIONS

55000

CASH FLOW FROM INVESTING ACTIVITIES

EQUIPMENT PURCHASED

-63000

EQUIPMENT SOLD

68000

5000

CASH FLOW FROM FINANCING ACTIVITIES

NOTES PAYABLE REDEEMED

-30000

ISSUE OF COMMON STOCK

10000

DIVD

-20000

-40000

CASH AND CASH EQUIVALENT

20000

ADD: OPENING CASH

16000

CLOSIN CASH BALANCE

36000

	INCOME TAX PAYABLE
		BY OP	66000
CASH PAID	83000	I.TAX	65000
CL	48000
	131000		131000

	INTEREST PAYABLE
		BY OP	2000
CASH	4000	INT	3000
TO CL	1000
	5000		5000

	A/C RECEIVABLE
OP	56000
SALES	300000
		CASH	304000
		BY CLO	52000
	356000		356000


		A/C PAY
		BY OP	36000
CASH	71000	PUR	81000
CL	46000
	117000		117000

		EQUIPMENT

OP	85000	SOLD	66000

PUR	63000
		CL	82000
	148000		148000

	RETAINED EARNING
		OP	6000
DIVIDEND	20000	c.y.	61000

CL	47000
	67000		67000

	PENSION PAYABLE
		OP	4000
CASH	21000	EXP	19000

CL	2000
	23000		23000

	INT payable
		op	2000
	4000	exp	3000
cl	1000
	5000		5000

		INV
OP	83000
PUR	81000		80000

		CL	84000
	164000		164000

COGS	OP STOCK	83000
ADD:	PUR	81000
LESS:	CL STOCK	-84000

COGS		80000

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Transcribed Image Text

In: AccountingThe Jasper Corporation provides you with the followinginformation for the year ended 12/31/17: &nThe Jasper Corporation provides you with the followinginformation for the year ended 12/31/17: IncomeStatement Information: Salesrevenue $ 300,000 Costof goods sold 80,000 Grossmargin 220,000 Depreciationexpense 47,000 Uncollectibleaccounts expense 1,500 Pensionexpense 19,000 Otherexpense 25,500 Interestexpense 3,000 Gainon the sale of equipment (2,000) Incometax expense 65,000 159,000 NetIncome $ 61,000 BalanceSheet Information 12/31/16 12/31/17 Cash $16,000 $ 36,000 AccountsReceivable 56,000 52,000 Allowancefor DoubtfulAccounts (6,000) (5,000) Inventory 83,000 84,000 Equipment 85,000 82,000 AccumulatedDepreciation (6,000) (7,000) Total $228,000 $242,000 AccountsPayable $36,000 $46,000 IncomeTaxesPayable 66,000 48,000 InterestPayable 2,000 1,000 NotesPayable, longterm 30,000 0 AccruedPensionLiability 4,000 2,000 DeferredTaxLiability 14,000 18,000 CommonStock, nopar 70,000 80,000 RetainedEarnings 6,000 47,000 Total $228,000 $242,000 AdditionalInformation:Equipment costing $66,000 wassold. New equipment was purchased, and $10,000 of commonstock was issued in partial payment for the new equipment.a. Prepare a Statement of Cash Flows for Jasper Corporation for2017 using the direct method. You must prepare all supplementaryschedules that would be required disclosures under the directmethod.Show all work including formulas.