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Jhutti Worksheet

Price: $2.50


Condensed financial data of Jhutti Company appear below.
Jhutti Company
Comparative Balance Sheets
31-Dec
Assets   2,014  2,013
Cash   90,300  47,250
Accounts receivable   80,900  57,000
Inventory   121,900  102,650
Investments   84,000  87,000
Equipment   250,000  205,000
Accumulated depreciation-equipment   (46,600)  (40,000)
 580,500  458,900
Liabilities and Stockholders’ Equity
Accounts payable   53,400  48,280
Accrued expenses payable   12,100  18,830
Bonds payable   100,000  70,000
Common stock   240,000  200,000
Retained earnings   175,000  121,790
 580,500  458,900
Jhutti Company
Income Statement
For the Year Ended December 31, 2014
Sales revenue   297,500
Gain on disposal of plant assets   8,550  306,050
Less: 
Cost of goods sold   99,460
Operating expenses (excluding 
 depreciation expense)   14,670
 Depreciation expense   47,900
 Income taxes   7,270
 Interest expense   2,940  172,240
Net income   133,810

Additional information:
1. Equipment costing $92,000 was purchased for cash during the year.
2. Investments were sold at cost.
3. Equipment costing $47,000 was sold for $14,250, resulting in gain of $8,550.
4. A cash dividend of $80,600 was declared and paid during the year.

Instructions
Prepare a worksheet for the statement of cash flows using the indirect method. Enter the
reconciling items directly in the worksheet columns, using letters to cross-reference each
entry.

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