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Based on the class text book- Principles of Managerial Financeby Gitman & Zutter - Chapter 4-Cash Flow and Financial Planningother additional readings, Solve the following problem on Cash FlowStatement.The income statement and a partial balance sheet for JeffersonCompany is presented below. Jefferson Company Income Statement For the Year Ended December 31, 2014Sales $500,000Cost of goodssold 390,000Gross profit$ 110,000Operating expenses:Salaries$ 70,000Depreciationexpense 20,000Miscellaneous 10,000 100,000 Netincome $10,000 ======_______________________________________________________________________________________________________________ Jefferson Company Partial Balance Sheet December 31, 2014 12/31/2014 12/31/2013Cash $80,000 $65,000Accounts receivable(net) 57,000 50,000Inventories 102,000 86,000Prepaidexpenses 4,500 4,000Accounts payable(merchandise) 58,000 51,000Salariespayable 7,500 6,000Required: Prepare the operating activities section of thestatement of cash flows using the directmethod.