Prepare a statement of cash flows for jackson corporation

Question

Prepare a statement of cash flows.

The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2013 and 2012, are provided below. Other financial data is also given.

Jackson Corporation

Condensed Income Statement

Year Ended December 31, 2013

Revenues	675,500
Costs and Expenses
Cost of goods sold	429,000
Salaries expense	125,000
Depreciation expense	15,000
Advertising expense	14,900
Utilities expense	18,000
Total costs and expenses	601,900
Net income before income taxes	73,600
Income taxes expense	18,400
Net income after income tax	$55,200

Jackson Corporation

Comparative Balance Sheet

December 31, 2013 and 2012

Assets	2013	2012
Cash	81,000	70,000
Accounts receivable (net)	55,650	52,000
Merchandise Inventory	49,000	54,000
Prepaid advertising	8,000	10,000
Property, Plant and Equipment	120,000	100,000
Less: Accumulated depreciation	(25,000)	(10,000)
Total Assets	$288,650	$276,000
Liabilities and Stockholders'Equity
Liabilities
Accounts payable	50,450	79,000
Salaries payable	4,500	3,500
Unearned Revenues	4,000	5,000
Income Taxes Payable	6,000	5,000
Notes payable, 2015	-	30,000
Total Liabilities	64,950	122,500
Stockholders'Equity
Common Stock, $2 par	75,000	50,000
Retained Earnings	148,700	103,500
Total Stockholders'Equity	223,700	153,500
Total Liabilities & Stockholders'Equity	$288,650	$276,000

Instructions:

Prepare a statement of cash flows for Jackson Corporation for 2013. Additional information for the year that is pertinent to its preparations follow:

a. No items of property, plant and equipment were disposed of during the year.

b. Paid cash for the additions to property, plant and equipment during the year.

c. Paid $10,000 dividends on the common stock in cash during the year.

d. Issued common stock at par value for cash.

e. Paid cash to retire the long-term note payable.