Thornton Inc. had the following operating balances for 2015:

Additional information for Thornton is as follows:
(a) All purchases of inventory were on account.
(b) Depreciation Expense of $96,000 was recognized during 2015.
(c) Equipment was sold during 2015, and a gain of $3,000 was recognized.
Thornton provides the following cash flow information for 2015:
Cash collected from customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950,000
Cash paid for inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (410,000)
Cash paid for other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,000)
Cash from operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 401,000
Prepare an income statement for Thornton for 2015.

Transcribed Image Text:

December 31, 2015 January 1, 2015 Accounts Payable Inventory Accounts Receivable Prepaid Expenses. $58,200 39,400 87,000 12,500 $61,500 37,300 89,100 14,100