Chapter 10, Problem 1UJ

To determine

Financial statements: Financial statements can be defined the statement which shows the financial position of the company. It includes income statement and balance sheet cash flow statement.

(a)

To determine the cost of building and building equipment for the year ended 2014.

To determine

(b)

To determine whether J & J Co. uses conservative or liberal method for depreciation.

To determine

(c)

To compute: To compute the actual interest expense paid by the company in 2014.

To determine

(d)

To determine J&J Co. free cash flow and to comment on company’s financial flexibility.