The Income Statement and a Partial Balance Sheet for Jefferson

question 41

Essay

The income statement and a partial balance sheet for Jefferson Company is presented below.Prepare the
operating activities section of the statement of cash flows using the direct method.
Jefferson Company
Income Statement
For the Current Year
$$\begin{array} { | l | r | r | } \hline \text { Sales } & & \$ 500,000 \\\hline \text { Cost af goods sold } & & 390,000 \\\hline \text { Gross profit } & & \$ 110,000 \\\hline \text { Operating expenses: } & & \\\hline \text { Salaries } & \$ 70,000 & \\\hline \text { Depreciation expense } & 20,000 & \\\hline \text { Miscellanedus } & 10,000 & 100,000 \\\hline \text { Net income } &10,000 & \\\hline\end{array}$$
$\begin{array}{c}\text { Jefferson Company }\\\text { Partial Balance Sheet }\\\text { End of this year}\\\\\begin{array}{|l|r|r|}\hline &\text { End of this year } & \text { End of prior year }\\\hline \text { Cash } & \$ 80,000 & \$ 65,000 \\\hline \text { Accounts receivable (net) } & 57,000 & 50,000 \\\hline \text { Inventories } & 102,000 & 86,000 \\\hline \text { Prepaid expenses } & 4,500 & 4,000 \\\hline \text { Accounts payable (merchandise) } & 58,000 & 51,000 \\\hline \text { Salaries payable } & 7,500 & 6,000\\\hline \end{array}\end{array}$

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Definitions:

Conditional

A grammatically correct construction used to assert that if an antecedent statement is true, then a consequent statement is true.

Symbolic Logic

A formal system of logic that uses symbols to represent logical expressions and operations, facilitating the examination of arguments.

False Statement

A claim or assertion that is not true and may intentionally deceive.

True Statements

Assertions or claims that accurately reflect reality or are in accordance with facts.