Question

Jacobson Manufacturing Corporation earned $82,000 in profit during 2017. Machinery was sold for $112,000 and a $22,000 loss on the sale was recorded. Machinery purchases totalled $325,000 including a July purchase for which an $92,000 promissory note was issued. Bonds were retired at their face value, and the issuance of new common shares produced an infusion of cash. Jacobson’s comparative balance sheets were as follows:

Jacobson Corporation
Comparative Balance Sheet Information
(in thousands)
	December 31
Assets	2017			2016
Cash	$	119		$	93
Accounts receivable		211			246
Merchandise inventory		348			325
Machinery		1,500			1,410
Accumulated depreciation		(220)			(240)
Total assets	$	1,958		$	1,834
Liabilities and Equity
Accounts payable	$	325		$	379
Notes payable		296			225
Dividends payable		38			26
Bonds payable		234			329
Common shares		736			590
Retained earnings		329			285
Total liabilities and equity	$	1,958		$	1,834

Required: (Enter amounts in thousands, as per balance sheet above. List any deduction in cash and cash outflows and loss as negative amounts.)
1. What was Jacobson’s depreciation expense in 2017?

2. What was the amount of cash flow from operating activities?



3. What was the amount of cash flow from investing activities?



4. What was the amount of dividends declared? paid?

5. By what amount would you expect the total inflows of cash to differ from the total outflows of cash?



6. What was the amount of cash flow from financing activities?

Answer 1