Examlex

Solved

JEM Company's Comparative Balance Sheets for 2004 and 2005 Appear

question 8

Essay

JEM Company's comparative balance sheets for 2004 and 2005 appear below.

JEM CompanyComparative Balance Sheets December 31, 2001 and 200520052004 Assets  Cash and cash equivalents $30,500$10,000 Accounts receivable (net) 64,50051,000 Inventory 100,000115,000 Equipment 55,00030,000 Accumulated depreciation-equipment (21,500)(14,000) Total assets $228,500$192,000 Accounts payable $52,500$46,000 Long-term notes payable 70,00050,000 Capital stock 60,00060,000 Retained earnings 46,00036,000 Total liabilities and stockholder’ equity $228,500$192,000\begin{array}{c}\text {JEM Company}\\\text {Comparative Balance Sheets }\\\text {December 31, 2001 and 2005}\\\begin{array}{lrr}&\underline{2005}&\underline{2004}\\\text { Assets }\\\text { Cash and cash equivalents } & \$ 30,500 & \$ 10,000 \\\text { Accounts receivable (net) } & 64,500 & 51,000 \\\text { Inventory } & 100,000 & 115,000 \\\text { Equipment } & 55,000 & 30,000 \\\text { Accumulated depreciation-equipment } & \underline{(21,500) }&\underline{ (14,000)} \\\text { Total assets } & \$ 228,500 & \$ 192,000\\\\\text { Accounts payable } & \$ 52,500 & \$ 46,000 \\\text { Long-term notes payable } & 70,000 & 50,000 \\\text { Capital stock } & 60,000 & 60,000 \\\text { Retained earnings } & \underline{46,000} & \underline{36,000} \\\quad \text { Total liabilities and stockholder' equity } & \$ 228,500 & \$ 192,000\end{array}\end{array}
The following additional information is available: net income for the year 2005 (as reported on the income statement) was $50,000; dividends of $40,000 were declared and paid; and equipment that cost $8,000 and had a book value of $1,000 was sold during the year for $2,500.

Based on the information provided, answer the following:

a. What was cash provided by operations?
b. What was cash provided by investing activity?
c. How much was cash provided by financing activity?
d. What is the total change in cash for 2005?


Definitions:

Unconditionally Accepted

Being fully accepted without any requirements or conditions by others.

Anxiety-Arousing

Refers to stimuli or events that induce feelings of anxiety or stress.

Unconscious Conflicts

Internal struggles in the unconscious mind, often stemming from repressed emotions or experiences, influencing behavior and mental health.

Stressful Life Situation

Any circumstance that poses a challenge or threat to a person's well-being, requiring adaptation or coping strategies.

Related Questions