JEM Company's comparative balance sheets for 2002 and 2003 are provided.
|
2003
|
2002
|
|
Assets
|
|
|
|
Cash and cash equivalents
|
$ 30,500
|
$ 10,000
|
|
Accounts receivable (net)
|
64,500
|
51,000
|
|
Inventory
|
100,000
|
115,000
|
|
Equipment.
|
55,000
|
30,000
|
|
Accumulated depreciation-equipment
|
(21,500)
|
(14,000)
|
|
Total assets
|
$228,500
|
$192,000
|
|
Liabilities and Stockholders' Equity
|
|
|
Accounts payable
|
$ 52,500
|
$ 46,000
|
|
Long-term notes payable.
|
70,000
|
50,000
|
|
Capital stock
|
60,000
|
60,000
|
|
Retained earnings
|
46,000
|
36,000
|
|
Total liabilities and stockholders' equity.
|
$228,500
|
$192,000
|
The following additional information is available:
a.Net income for the year 2003 (as reported on the income statement) was $50,000.
b.Dividends of $40,000 were declared and paid.
c.Equipment that cost $8,000 and had a book value of $1,000 was sold during the year for $2,500.
Required
Based on the information provided, prepare a statement of cash flows for JEM Company for the year ended December 31, 2003. Use the indirect method to report cash flows from operating activities.