Complete Statement of Cash Flows
Below are balance sheet and income statement data for Judy Maxwell Company. (Note: For the balance sheet data, the end of year information is in the left column.)
|
Balance Sheet |
||
|
|
2008 |
2007 |
|
Cash |
$ 228 |
$ 120 |
|
Investment securities (available for sale) |
170 |
100 |
|
Accounts receivable |
1,100 |
718 |
|
Paid in capital |
4,000 |
3,500 |
|
Inventory |
1,998 |
2,151 |
|
Prepaid selling and administrative expenses |
97 |
108 |
|
Retained earnings (deficit) |
784 |
(383) |
|
Accumulated depreciation |
1,400 |
1,090 |
|
Accounts payable |
200 |
270 |
|
Unearned revenue |
50 |
80 |
|
Income taxes payable |
42 |
26 |
|
Other long term liabilities |
289 |
90 |
|
Property, plant, and equipment |
7,000 |
5,900 |
|
Long term debt |
4,458 |
5,174 |
|
Accumulated other comprehensive income |
70 |
0 |
|
Intangible assets |
700 |
750 |
|
Income Statement (for 2008) |
||
|
Sales |
|
$22,680 |
|
Cost of goods sold |
$14,800 |
|
|
Loss on sale of property, plant, and equipment |
170 |
|
|
Selling and administrative expenses |
3,330 |
|
|
Amortization expense |
50 |
|
|
Depreciation expense |
1,068 |
|
|
Income tax expense |
1,200 |
|
|
Total expenses and losses |
|
20,618 |
|
Net income |
|
|
$2,062Additional information for Judy Maxwell Company is as follows:
(a) Property, plant, and equipment with an original historical cost of $1,200 was sold during
2008.
(b) All accounts payable relate to inventory purchases.
(c) The “Other long term liabilities” item is Judy Maxwell’s pension liability. Pension expense is reported as part of selling and administrative expenses.
(d) During 2008, Judy Maxwell issued shares of common stock to an investor in exchange for property, plant, and equipment valued at $350.
(e) The accumulated other comprehensive income relates solely to the available for sale investment securities.
Instructions: Prepare a complete statement of cash flows for 2008 for Judy Maxwell Company. Use the direct method for reporting cash flows from operating activities.