JEM Company's Comparative Balance Sheets for 2004 and 2005 Appear

JEM Company's comparative balance sheets for 2004 and 2005 appear below.

$\begin{array}{c}\text {JEM Company}\\\text {Comparative Balance Sheets }\\\text {December 31, 2001 and 2005}\\\begin{array}{lrr}&\underline{2005}&\underline{2004}\\\text { Assets }\\\text { Cash and cash equivalents } & \$ 30,500 & \$ 10,000 \\\text { Accounts receivable (net) } & 64,500 & 51,000 \\\text { Inventory } & 100,000 & 115,000 \\\text { Equipment } & 55,000 & 30,000 \\\text { Accumulated depreciation-equipment } & \underline{(21,500) }&\underline{ (14,000)} \\\text { Total assets } & \$ 228,500 & \$ 192,000\\\\\text { Accounts payable } & \$ 52,500 & \$ 46,000 \\\text { Long-term notes payable } & 70,000 & 50,000 \\\text { Capital stock } & 60,000 & 60,000 \\\text { Retained earnings } & \underline{46,000} & \underline{36,000} \\\quad \text { Total liabilities and stockholder' equity } & \$ 228,500 & \$ 192,000\end{array}\end{array}$
The following additional information is available: net income for the year 2005 (as reported on the income statement) was $50,000; dividends of $40,000 were declared and paid; and equipment that cost $8,000 and had a book value of $1,000 was sold during the year for $2,500.

Based on the information provided, answer the following:

a. What was cash provided by operations?
b. What was cash provided by investing activity?
c. How much was cash provided by financing activity?
d. What is the total change in cash for 2005?

Correct Answer:

Verified

a. Cash provided by ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free