Using the income statements and changes in balance sheet accounts provided for Firms A and B, you will need to provide the following information:

(c) Summary analysis of the statements of cash flows for Firms A and B (see Exhibit 4.6 on page 181 of your textbook):

1. Total inflows for Firm A

2. Total outflows for Firm A

3. Total inflows for Firm B

4. Total outflows for Firm B

Income statement for year ended December 31,2015	Firm A	Firm B
Sales	1,000,000	1,000,000
Cost of good Sold	700,000	700,000
Gross Profit	300,000	300,000
Other Expenses
Selling and Administrative	120,000	115,000
Depreciation	10,000	30,000
Interest Expense	20,000	5,000
Earnings before taxes	150,000	150,000
Income tax expense	75,000	75,000
Net Income	75,000	75,000

Changes in balance Sheet	Firm A	Firm B
Cash and Cash equivalents	0	+10000
Accounts Receivable	+40000	+5000
Inventory	+40000	-10000
PPE	+20000	+70000
Less Accumulated Depreciation	(+10000)	(+30000)
Total Assets	+90000	+45000
Accounts Payable	-20000	-5000
Notes Payable (current)	+17000	+2000
Long-term debt	+20000	-10000
Deferred Taxes (noncurrent)	+3000	+18000
Capital, stock	-	-
Retained earnings	+70000	+40000
Total Liabilities and Equity	+90000	+45000

194 CHAPTER 4 Statement of Cash Flows vailable for two 4.10. The following income statement and balance sheet information are available firms, Firm A and Firm B. (a) Calculate the amount of dividends Firm A and Firm B paid using the informa given. (b) 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 Sales $1,000,000 $1,000,000 Cost of goods sold 700,000 Gross profit 700,000 300,000 300,000 Other expenses Selling and administrative 120,000 115,000 Depreciation 10,000 30,000 Interest expense 20,000 5,000 Earnings before taxes 150,000 150,000 Income tax expense 75,000 75,000 Net Income $ 75,000 $ 75,000 Changes in Balance Sheet Accounts December 31, 2014, to December 31, 2015 Firm A Firm B Cash and cash equivalents $ 0 $+10,000 Accounts receivable +40,000 +5,000 Inventory +40,000 --10,000 Property, plant, and equipment +20,000 +70,000 Less accumulated depreciation (+10,000) (+30,000) Total Assets $ +90,000 $ +45,000 Accounts payable $-20,000 $ -5,000 Notes payable (current) +17,000 +2,000 Long-term debt +20,000 -10,000 Deferred taxes (noncurrent) +3,000 +18,000 Capital, stock Retained earnings +70,000 +40,000 Total Liabilities and Equity $ +90,000 $+45,000