Q1) Jones Company
Financial Information
December 2003 December 2004
Net income $1,500 $3,000
Accounts receivable 750 750
Accumulated depreciation 1,125 1,500
Common stock 4,500 5,250
Paid-in capital 7,500 8,250
Retained earnings 1,500 2,250
Accounts payable 750 750
Based on the information given in table, compute the after tax cash flow from operations for 2004 (no assets were disposed of during year, and there was no change in interest payable or taxes payable):
a. $3,375
b. $2,250
c. $3,750
d. $3,000