Ozark Corporation reported net income of $100,000 for 20X5. 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.

B-16.14 Ozark Corporation reported net income of $100,000 for 20X5. 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, 20X5. Comparative balance sheets for Ozark follow. OZARK CORPORATION Balance Sheet December 31, 20X4 and 20X5 Assets Cash 20X5 $ 458,700 20X4 $ 471,450 Accounts receivable 199,250 171,500 Inventories 248,600 278,800 13,000 11,000 250,000 250,000 1,500,000 1,300,000 Prepaid insurance Land Building and equipment Less: Accumulated depreciation Total assets (205,000) (180,000) $ 2,464,550 $ 2,302,750 $ 85,700 $ 93,400 Liabilities Accounts payable Interest payable 10,500 15,000 Income taxes payable 22,000 8,000 Common stock 710,000 700,000 Paid in capital in excess of par 990,000 900,000 Retained earnings 646,350 586,350 Stockholders' equity Total liabilities and equity $ 2,464,550 $ 2,302,750 B-16.14 Name: Date: B-16.14 Section: OZARK CORPORATION Statement of Cash Flows (Indirect Approach) For the Year Ending December 31, 20X5 Cash flows from operating activities: Net income $ - Add (deduct) noncash effects on operating income 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 investing activities: Purchase of equipment $ - Net cash used by investing activities - Cash flows from financing activities: 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 - $