"Ozark Corporation reported net income of $100,000 for 2015. Theincome statement revealed sales of $1,000,000; gross profit of$520,000; selling and administrative costs of $340,000; interestexpense of $20,000; and income taxes of $60,000.
The selling and administrative expenses included $25,000 fordepreciation. No equipment was sold during the year. Equipmentpurchases were made with cash. Prepaid insurance included in thebalance sheet related to administrative costs. All accounts payableincluded in the balance sheet relate to inventory purchases. Thechange in retained earnings is attributable to net income anddividends. The increase in common stock and additional paid-incapital is due to issuing additional shares for cash.
"
Using the indirect approach, prepare a statement of cash flows forOzark for the year ending December 31, 2015. Comparative balancesheets for Ozark follow.
OZARK CORPORATION
Balance Sheet
December 31, 2014 and 2015
ASSETS 2015 $2,014
Cash $458,700 $471,450
Accounts receivable 199,250 171,500
Inventories 248,600 278,800
Prepaid insurance 13,000 11,000
Land 250,000 250,000
Building and equipment 1,500,000 1,300,000
Less: Accumulated depreciation (205,000) (180,000)
Total assets $2,464,550 $2,302,750
LIABILITIES
Accounts payable $85,700 $93,400
Interest payable 10,500 15,000
Income taxes payable 22,000 8,000
STOCKHOLDERS' EQUITY
Common stock 710,000 700,000
Paid in capital in excess of par 990,000 900,000
Retained earnings 646,350 586,350
Total liabilities and equity $2,464,550 $2,302,750
This below is what i am needing OZARK CORPORATION Statement of Cash Flows(Indirect Approach) For the year ending December31, 2015 Cash flows from operatingactivities: Net income $ - Add (deduct) noncash effects on operatingincome Depreciation expense $ - Increase in accounts receivable - Decrease in inventory - Increase in prepaid insurance - Decrease in accounts payable - Decrease in interest payble - Increase in income taxes payable - - Net cash provided by operating activities $ - Cash flows from investingactivities: Purchase of equipment $ - Net cash used by investing activities - Cash flows from financingactivities: Proceeds from issuing stock $ - Dividends on common - Net cash provided by financing activities - Net decrease in cash $ - Cash balance at January 1,20X5 - Cash balance at December 31,20X5 $ -
"Ozark Corporation reported net income of $100,000 for 2015. Theincome statement revealed sales of $1,000,000; gross profit of$520,000; selling and administrative costs of $340,000; interestexpense of $20,000; and income taxes of $60,000.
The selling and administrative expenses included $25,000 fordepreciation. No equipment was sold during the year. Equipmentpurchases were made with cash. Prepaid insurance included in thebalance sheet related to administrative costs. All accounts payableincluded in the balance sheet relate to inventory purchases. Thechange in retained earnings is attributable to net income anddividends. The increase in common stock and additional paid-incapital is due to issuing additional shares for cash.
"
Using the indirect approach, prepare a statement of cash flows forOzark for the year ending December 31, 2015. Comparative balancesheets for Ozark follow.
OZARK CORPORATION
Balance Sheet
December 31, 2014 and 2015
ASSETS 2015 $2,014
Cash $458,700 $471,450
Accounts receivable 199,250 171,500
Inventories 248,600 278,800
Prepaid insurance 13,000 11,000
Land 250,000 250,000
Building and equipment 1,500,000 1,300,000
Less: Accumulated depreciation (205,000) (180,000)
Total assets $2,464,550 $2,302,750
LIABILITIES
Accounts payable $85,700 $93,400
Interest payable 10,500 15,000
Income taxes payable 22,000 8,000
STOCKHOLDERS' EQUITY
Common stock 710,000 700,000
Paid in capital in excess of par 990,000 900,000
Retained earnings 646,350 586,350
Total liabilities and equity $2,464,550 $2,302,750
| This below is what i am needing | ||||
| OZARK CORPORATION | ||||
| Statement of Cash Flows(Indirect Approach) | ||||
| For the year ending December31, 2015 | ||||
| Cash flows from operatingactivities: | ||||
| Net income | $ - | |||
| Add (deduct) noncash effects on operatingincome | ||||
| Depreciation expense | $ - | |||
| Increase in accounts receivable | - | |||
| Decrease in inventory | - | |||
| Increase in prepaid insurance | - | |||
| Decrease in accounts payable | - | |||
| Decrease in interest payble | - | |||
| Increase in income taxes payable | - | - | ||
| Net cash provided by operating activities | $ - | |||
| Cash flows from investingactivities: | ||||
| Purchase of equipment | $ - | |||
| Net cash used by investing activities | - | |||
| Cash flows from financingactivities: | ||||
| Proceeds from issuing stock | $ - | |||
| Dividends on common | - | |||
| Net cash provided by financing activities | - | |||
| Net decrease in cash | $ - | |||
| Cash balance at January 1,20X5 | - | |||
| Cash balance at December 31,20X5 | $ - | |||
Related questions
The balance sheet and the income statement for the year endedDecember 31, 2016 for Johnson Inc. follows. During 2016, cash of15,000 was paid for building and equipment, 10,000 was paid forretirement of notes payable, and $68,000.was paid for cashdividends. . During 2016, cash was received from issuance ofstock.
| Balance Sheet As of December, 31. | ||
2016 | 2015 | |
Cash | $ 25,000 | $ 20,000 |
Accounts receivable, net | 60,000 | 70,000 |
Inventory | 80,000 | 100,000 |
Land | 50,000 | 50,000 |
Building and equipment | 130,000* | 115,000 |
Accumulated depreciation | (85,000) | (70,000) |
Total assets | $260,000 | $285,000 |
Accounts payable | $ 30,000 | $ 35,000 |
Income taxes payable | 4,000 | 3,000 |
Wages payable | 5,000 | 3,000 |
Current notes payable | 50,000** | 60,000 |
Common stock | 110,000*** | 100,000 |
Retained earnings | 61,000 | 84,000 |
Total liabilities and stockholders's equity | $260,000 | $285,000 |
| Income Statement For the Year Ended December 31, 2016 | ||
Sales | $500,000 | |
Less expenses: | ||
Cost of goods sold | $330,000 | |
Selling and administrative expenses | 90,000 | |
(includes depreciation of $15,000) | ||
Interest expense | 5,000 | |
Total expenses | 425,000 | |
Income before taxes | $ 75,000 | |
Income tax expense | 30,000 | |
Net income | $ 45,000 | |
(Required) Prepare the statement of cash flows for 2016. Presentcash flows from operations using the indirect approach..
