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Need help...so confused 4B Ozark Corporation reported net income of $100,000 for 2015. The income statement revealed sales of $1,000,000; gross profit of $520,000, selling
Need help...so confused 4B Ozark Corporation reported net income of $100,000 for 2015. The income statement revealed sales of $1,000,000; gross profit of $520,000, selling and administrative costs of $340,000; interest expense of $20,000; and income taxes of $60,000 The selling and administrative expenses included $25,000 for depreciation. No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs. All accounts payable included in the balance sheet relate to inventory purchases. The change in retained earnings is attributable to net income and dividends. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash. Using the indirect approach, prepare a statement of cash flows for Ozark for the year ending December 31, 2015. Comparative balance sheets for Ozark follow OZARK CORPORATION Balance Sheet December 31, 2014 and 2015 10ASSETS 2015 Cash Accounts receivable Inventories 458,700 S 199.250 248.600 2,014 471,450 171.500 278,800 12
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