I'm wondering what an Indirect Cash Flow Statement would look like based information in the following income statement and balance sheet.
Also, we have dividends of $15,000,000 in 2015, $15,250,000 in 2014 and $6,000 in 2013.
(Both statements are in thousands so it might affect the results a little but I'm not so much looking for the exact answer but rather the general method and general idea of how to enter the data.)
Year Ended December 31, 2014 2015 2013 Revenue Sales 288,876 271,839 307,716 Sales returns 23,110 12,432 5,622 Costs of goods sokd 176,961 179,103 Gross profit 86,663 98,3 125,133 Operating expenses Administrative wages expense 19,707 18,344 21,094 Advertising expense 1,161 214 261 Auto expenses Bad debt expense 13,901 2,028 Bonus expense 459 Depreciation expense 617 581 166 4,749 5,379 4,325 Insurance expense Legal and professional expense 8987 11,037 4,506 Maintenance expense Miscellaneous Office Expense 25 28 Payroll tax expense 1,767 1,939 Pension/profit-sharing plan ex 3,750 Phone 54 58 Postal 160 87 101 Property tax expense 110 Rent or lease expense 2,231 1,370 3,254 Research and devekopment Utilities Warehouse salaries 5,271 5,792 Warranty expense 1,422 Total operating expenses 67,702 90,997 Income from investments 659 Interest expense 2,942 3,373 148 Interest income 142 Unrealized (pains) and losses - investments Total non operating income (expense) 2,122 238 Extraordinary items Loss on legal settlement 23,965 Income before income taxes 16,839 37,131 9,933 7,270 14,142 2,956 Income tax expense-federal Income tax expense- statee 536 Net income 6,441 20,485 arnings per share (total shares 8,275,000) 1.00 2.48 0.78 Chester Inc. Balance Sheet (in thousands, except per share data) Year Ended December 31, 2015 Assets Current assets Cash on hand Checking account operatine MMKT accounts Investments-trading 6,979 Accounts recevable 49,043 20,514 Alowarnce for coubtful accounts 2,943 Other recerabes 75351 23,532 Reserve for inventory obsolescence 10-559 Prepaid insurance 1,829 Office supplies Total current assets 129,628 48,782 Property, plant & equipment Land 146 Buikdings and land improvements Machinery, equipment, office furniture Accum. depreciation Total property plan& equipment 1,403 2,812 Other noncurrent assets Total assets 116,682 132,953 50,112 Liabiities Current abilitics Accounts payable Wages payable FICA employee withholding Medicare withhokding Federal payroll axes payable State payroll taxes payable FICA employer withhokfing Medicare employer withholding Income taxes receivable/payable Line of credit 47,482 ,231 12500 Current portion long term note payable Interest payable Bonuses payable Dividend payable 15000 52506000 Total current abilities 83,4T0 27,487 Lon term note payable 95511 105093 27,487 Total iabiities Stockholders' equity Common stock 10,13110,131 Paid-in capital 9,279 9,279 9,279 Retained Earnings 1,T61 Total iabilties & stockholder equity 116,682 50,112
