Question

Jones Inc. recognized the following balances in its financial records: Account Dec. 31, 2019 Dec. 31,...

Jones Inc. recognized the following balances in its financial records:

Account Dec. 31, 2019 Dec. 31, 2020
Dividends payable $40,000 $10,000
Retained earnings 200,000 275,000


Jones Inc. reported net income of $155,000 in 2020. Based on this information, what is the effect on the financing activities section of the statement of cash flows?

Select one:

a. Cash outflow of $80,000

b. Cash outflow of $110,000

c. Cash outflow of $50,000

d. Cash outflow of $30,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Retained Earning 2019 $       2,00,000
Add: Net Income $       1,55,000
Less:
Retained Earning 2020 $       2,75,000
Dividend Declared $           80,000
Calculation of dividend paid
Dividend payable 2019 $           40,000
Add:
Dividend Declared $           80,000
Less:
Dividend payable 2020 $           10,000
Dividend cash paid $       1,10,000
Correct Option :b. Cash outflow of $110,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Awesome Inc. Statement of financial position As at December 31 20X8 20X7 Accounts receivable $ 160,000...
Awesome Inc. Statement of financial position As at December 31 20X8 20X7 Accounts receivable $ 160,000 $ 110,000 Inventory 62,000 50,000 Prepaid expenses 3,000 4,000 Investments at FVPL 18,000 40,000 Investments at FVOCI 18,000 13,000 Property, plant and equipment (net) 80,000 100,000 Land 180,000 94,000 $ 521,000 $ 411,000 Bank overdraft $ 9,000 $ 32,000 Accounts payable 30,000 20,000 Other current liabilities 45,000 60,000 Bank loans 37,000 50,000 Bonds payable 200,000 100,000 Share capital 30,000 10,000 Retained earnings 159,000 133,000...
Swifty Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2019 Dec. 31, 2020 Raw...
Swifty Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2019 Dec. 31, 2020 Raw materials inventory $99900 $80300 Work in process inventory 129400 144300 Finished goods inventory 125000 114600 During 2020, Swifty purchased $949400 of raw materials, incurred direct labour costs of $125800, and incurred manufacturing overhead totalling $160300. How much is total manufacturing costs incurred during 2020 for Swifty? $1241200 $1255100 $1235500 $1250400
Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets...
Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets Liabilities and Equity Cash $ 53,000 Accounts Payable $ 30,000 Accounts Receivable 42,000 Common Stock 77,000 Land 27,000 Retained Earnings 15,000 Totals $ 122,000 $ 122,000 The following accounting events apply to Waddell Company’s 2019 fiscal year: Jan. 1 Acquired $48,000 cash from the issue of common stock. Feb. 1 Paid $5,700 cash in advance for a one-year lease for office space. Mar. 1...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500 Cash 80,000 Common stock 200,000 Equipment 96,000 Equity investments 76,300 Inventory 57,000 Long-term liabilities 100,000 Patents 32,000 Retained earnings 17,000 Salaries payable 15,000 Unearned revenue 1,500 Additional information: The cash balance includes $20,000 cash restricted for future plant expansion. Allowance for doubtful accounts is $3,800. Accumulated depreciation on equipment is $40,000. The long-term liabilities balance includes $12,000 due in 2020. Format guidance: Enter whole...
Awesome Inc. Statement of financial position As at December 31 20X8 20X7 Accounts receivable $ 160,000...
Awesome Inc. Statement of financial position As at December 31 20X8 20X7 Accounts receivable $ 160,000 $ 110,000 Inventory 62,000 50,000 Prepaid expenses 3,000 4,000 Investments at FVPL 18,000 40,000 Investments at FVOCI 18,000 13,000 Property, plant and equipment (net) 80,000 100,000 Land 180,000 94,000 $ 521,000 $ 411,000 Bank overdraft $ 9,000 $ 32,000 Accounts payable 30,000 20,000 Other current liabilities 45,000 60,000 Bank loans 37,000 50,000 Bonds payable 200,000 100,000 Share capital 30,000 10,000 Retained earnings 159,000 133,000...
The financial statements of Garver, Inc., provide the following information for the current year: Dec.31 Jan.1...
The financial statements of Garver, Inc., provide the following information for the current year: Dec.31 Jan.1 Accounts receivable $ 70,000 $ 80,000 Inventory $ 110,000 $ 102,000 Prepaid expenses $ 24,000 $ 28,000 Accounts payable (for merchandise) $ 66,000 $ 64,000 Accrued expenses payable $ 30,000 $ 40,000 Net sales $ 520,000 Cost of goods sold $ 260,000 Operating expenses (including depreciation of $36,000) $ 160,000 Compute the cash received from customers during the current year. a $530,000 b $510,000...
The following amounts were reported on the December 31, 2019, balance sheet: Cash:    $ 16,000...
The following amounts were reported on the December 31, 2019, balance sheet: Cash:    $ 16,000 Accounts receivable:    44,000 Common stock:    80,000 Wages payable:    10,000 Retained earnings:    160,000 Land:    40,000 Accounts payable:    30,000 Bonds payable:    240,000 Merchandise inventory:    60,000 Buildings and equipment, net of accumulated depreciation:    360,000 Required:     a) Calculate working capital at December 31, 2019.     b) Calculate the current ratio at December 31, 2019.     c) Calculate the...
The following reflects Ace Inc.’s adjusted accounts at their normal balances for the year ended December...
The following reflects Ace Inc.’s adjusted accounts at their normal balances for the year ended December 31, 2019. Cash 80,000 Accounts Receivable 15,000 Supplies 3,000 Inventory 150,000 Prepaid Insurance (represents 2 years) 50,000 Equipment 300,000 Accumulated Depreciation - Equipment 40,000 Land 75,000 Patent 5,000 Accounts Payable 145,000 Note Payable (due in 3 equal annual installments) 36,000 Deferred Revenue (represents 8 months) 16,000 Common Stock (50,000 shares authorized, $5 par, 20,000 shares issued and outstanding 100,000 Additional Paid in Capital 30,000...
On Dec 31, 2018, the balance sheets of Paper Inc. and Scissors Inc. were as follows:...
On Dec 31, 2018, the balance sheets of Paper Inc. and Scissors Inc. were as follows: Paper Inc Scissors Inc Cash and Short-Term Securities $400,000 $ 25,000 Inventory $ 50,000 $ 10,000 Plant and Equipment (net) $300,000 $120,000 Total Assets $750,000 $155,000 Current Liabilities $ 75,000 $ 20,000 Bonds Payable $100,000 $ 30,000 Common Shares $150,000 $ 55,000 Retained Earnings $425,000 $ 50,000 Total Liabilities and Equity $750,000 $155,000 On that date, the fair values of Scissors's Assets and Liabilities...
19. Benito Company reported the following information for the financial year ended 30/06/2020: Profit from ordinary...
19. Benito Company reported the following information for the financial year ended 30/06/2020: Profit from ordinary activities before income tax expense $986,000 Cash received from customers / Accounts receivables 80,000 Paid to suppliers / Accounts payable 80,000 Cash received from the sale of Land 28,000 Obtained a loan from Good Bank 60,000 Purchase a motor vehicle for cash 80,000 Share issues 120,000 Salary & wages paid 16,000 Dividend paid 14,000 Annual leave paid 20,000 Interest received from an investment 4,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT