heet information are available for t using the information 150,000 10. The following income statement and balance sheet firms, Firm A and Firm B. (a) Calculate the amount of dividends Firm A and Firm B paid using the in given. D) Prepare a statement of cash flows for each firm using the indirect method (c) Analyze the difference in the two firms. Income Statement for Year Ended December 31, 2015 Firm A Firm B $1,000,000 $1,000,000 Sales 700,000 700,000 Cost of goods sold 300,000 300,000 Gross profit Other expenses 120,000 115,000 Selling and administrative 10,000 30,000 Depreciation 20,000 5,000 Interest expense Earnings before taxes 150,000 Income tax expense 75,000 75,000 Net Income $ 75,000 $ 75,000 Pot Isis Changes in Balance Sheet Accounts December 31, 2014, to December 31, 2015 Firm A Cash and cash equivalents $ 0 $+10,000 Accounts receivable +40,000 +5,000 Inventory +40,000 -10,000 Property, plant, and equipment ah+20,000 +70,000 Less accumulated depreciation (+10,000) (+30,000) Total Assets $ +90,000 $ +45,000 Accounts payable to $-20.000 $ -5,000 Notes payable (current) +17,000 +2,000 Long-term debt +20,000 -10,000 Deferred taxes (noncurrent) +3,000 Capital, stock Retained earnings +70,000 Total Liabilities and Equity $ +90,000 +18,000 (5) +40,000 $ +45,000