The Following Data Pertains to Joss Decorating for the Year

question 128

Essay

The following data pertains to Joss Decorating for the year of 2012:
a.Salaries and wages: accrued,$175,000; paid in cash $200,000.
b.Depreciation,$50,000.
c.Interest expense,all paid in cash,$12,500.
d.Other expenses,all paid in cash,$112,000.
e.Income taxes accrued,$35,000; income taxes paid in cash,$33,000.
f.Bought plant and facilities for $365,000 cash.
g.Sales of $1,500,000,all on credit.Cash collections from customers,$1,250,000.
h.The cost of items sold was $750,000.Purchases of inventory totaled $825,000; inventory and accounts payable were affected accordingly.
i.Cash payments on trade accounts payable were $700,000.
j.Issued long-term debt for $110,000 cash.
k.Paid cash dividends of $45,000.
Prepare a statement of cash flows using the direct method for reporting cash flows from operating activities.Omit supporting schedules.

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Definitions:

Product-Based Definition

Characterization of a product strictly in terms of its physical attributes and features.

Poka-Yoke

Literally translated, “foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes over time.

Profitability

A measure of the efficiency and effectiveness of a company in generating profits from its operations, indicative of its financial health over time.