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Create a statement of cash flow using the inderect method NoName Company Income Statement For the Year-Ended December 31, 2015 Sales $ 2,430,000.00 COGS $

Create a statement of cash flow using the inderect method

NoName Company

Income Statement

For the Year-Ended December 31, 2015

Sales

$ 2,430,000.00

COGS

$ 1,565,000.00

Gross profit

$ 865,000.00

Operating expenses:

Depreciation expense

$ 16,000.00

Other operating expenses

$ 598,000.00

Total operating expenses

$ 614,000.00

Income from operations:

Other income:

Gain on sale of investments

$ 6,500.00

Other expenses:

Interest expense

$ 17,000.00

Income before income tax

$ 240,500.00

Income tax expense

$ 63,000.00

Net income

$ 177,500.00

NoName Company

Comparative Balance Sheet

December 31, 2015

2015

2014

Assets

Current Assets:

Cash

$ 184,420.00

$ 25,740.00

Accounts Receivable

$ 68,700.00

$ 83,000.00

Inventories

$ 134,500.00

$ 128,000.00

Prepaid insurance

$ 2,980.00

$ 4,560.00

Property, Plant, Equiment:

Investments (long term)

$ 211,000.00

$ 120,000.00

Land

$ 208,500.00

$ 255,000.00

Equipment

$ 203,000.00

$ 203,000.00

Accumulated depreciation-Equipment

$ (117,500.00)

$ (101,500.00)

Total Assets

$ 895,600.00

$ 717,800.00

Liabiities and Stockholder's Equity

Current Liabilties:

Accounts Payable

$ 26,500.00

$ 81,000.00

Interest payable

$ 3,400.00

$ 2,300.00

Income taxes payable

$ 30,200.00

$ 32,500.00

Longterm Liabilties:

Notes Payable

$ 255,000.00

$ 242,000.00

Stockholder's Equity:

Common Stock

$ 273,000.00

$ 230,000.00

Retained earnings

$ 307,500.00

$ 130,000.00

Total Liabilities and Stockholder's equity

$ 895,600.00

$ 717,800.00

Additional Notes:

Assume that all increases and decreases in long-term assets, long term liabilities, and common

stock are a result of cash transactions

Land costing $46,500 was sold, resulting in a gain of $6,500. No other long term assets were sold

Additional long term investments were purchased

An additional long term note payable was signed, No repayment on notes were made

Additional common stock were issued

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