Author Question: The employer identification number is the same as the owner's Social Security number. Indicate ... (Read 150 times)

ss2343 · **on:** Jul 6, 2018

The employer identification number is the same as the owner's Social Security number.
Indicate whether the statement is true or false

Question 2

Jesse Corporation reported the following information for the current year:
(1) Net income is 205 million.
(2) Acquisitions were 32 million.
(3) Customer accounts receivable increased by 12 million.

(4) Dividends paid to common shareholders were 8 million.
(5) Depreciation expense was 41 million.
(6) Income tax payable decreased by 11 million.
(7) Long-term debt increased by 28 million.
(8) Accounts payable decreased by 6 million.
(9) Inventories increased by 17 million.

Required: Based on the above information, calculate the following items:

a. Cash flow from operating activities.
b. Cash flow from investing activities.
c. Cash flow from financing activities.
d. The increase or decrease in the cash balance.

TheDev123 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

F

Answer to Question 2

a. Net income 205 million
Increased A/R (12)
Depreciation 41
Decreased tax payable (11)
Decreased A/P (6)
Increased inventories (17)
200 million

b.Acquisitions (32) million

c. Dividends paid (8) million
Increase of long-term debt 28
20 million

d. 200+(32)+20 = 188 million