Using the statements of cash flows for JAJ Enterprises:
a. prepare a summary analysis of the statement of cash flows,
b. analyze cash flow from operating activities, and
c. analyze the cash inflows and cash outflows.
JAJ Enterprises
Statement of Cash Flows
For the Years Ended December 31, 2015 and 2014
(in thousands) 2015 2014
Cash flows from operating activities (CFO):
Net income 8,100 6,800
Adjustments to reconcile net income to CFO:
Depreciation and amortization 3,100 1,600
Deferred income taxes 900 700
Other non-cash items (600) (700)
(Increase) decrease in operating assets and liabilities:
Accounts receivable (7,800) (2,300)
Inventories (2,100) 1,700
Other current assets (900) 2,000
Accounts payable (1,300) 4,100
Income taxes payable 400 (800)
Accrued liabilities 1,700 700
Net CFO 1,500 13,800
Cash flows from investing activities:
Purchases of property and equipment (800) (1,200)
Net cash used by investing activities (800) (1,200)
Cash flows from financing activities:
Proceeds from common stock sales 4,700 4,600
Proceeds (repayments) of short-term debt 100 (1,100)
Repayment of long-term debt (200) (3,300)
Net cash provided by financing activities 4,600 200
Net increase in cash 5,300 12,800
Beginning cash balance 30,600 17,800
Ending cash balance 35,900 30,600
Question 2
Compare and contrast payroll Forms 940 and 941.