The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2013
Prepare a statement of cash flows.The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2013 and 2012, are provided below. Other financial data is also given.Jackson CorporationCondensed Income StatementYear Ended December 31, 2013Revenues675,500Costs and ExpensesCost of goods sold429,000Salaries expense125,000Depreciation expense15,000Advertising expense14,900Utilities expense18,000Total costs and expenses601,900Net income before income taxes73,600Income taxes expense18,400Net income after income tax$55,200Jackson CorporationComparative Balance SheetDecember 31, 2013 and 2012Assets20132012Cash81,00070,000Accounts receivable (net)55,65052,000Merchandise Inventory49,00054,000Prepaid advertising8,00010,000Property, Plant and Equipment120,000100,000Less: Accumulated depreciation(25,000)(10,000)Total Assets$288,650$276,000Liabilities and Stockholders’EquityLiabilitiesAccounts payable50,45079,000Salaries payable4,5003,500Unearned Revenues4,0005,000Income Taxes Payable6,0005,000Notes payable, 2015-30,000Total Liabilities64,950122,500Stockholders’EquityCommon Stock, $2 par75,00050,000Retained Earnings148,700103,500Total Stockholders’Equity223,700153,500Total Liabilities & Stockholders’Equity$288,650$276,000Instructions:Prepare a statement of cash flows for Jackson Corporation for 2013. Additional information for the year that is pertinent to its preparations follow:a. No items of property, plant and equipment were disposed of during the year.b. Paid cash for the additions to property, plant and equipment during the year.c. Paid $10,000 dividends on the common stock in cash during the year.d. Issued common stock at par value for cash.e. Paid cash to retire the long-term note payable.