The following comparative balance sheets and income statement are available for AddieMae Inc. Prepare a statement of cash flows for 2016 using the indirect method and analyze the statement.
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December 31,
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2016
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2015
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Cash
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$ 3 300
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$1 000
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Accounts receivable (net)
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1,100
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600
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Inventory
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11,200
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4,300
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Total Current Assets
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$15,600
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$5,900
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Plant and equipment
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$ 3,000
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$2,300
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Less accumulated depreciation
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(1,300)
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(800)
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Plant and equipment (net)
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$ 1,700
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$1,500
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Long-term invesbnents
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1,200
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900
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Total Assets
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$18,500
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$8,300
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Accounts payable
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$ 3 300
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$2,500
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Accrued liabilities
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700
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600
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Income taxes payable
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Total Current Liabilities
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$ 4,400
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$3,200
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Long-term debt
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200
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0
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Total Liabilities
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$ 4,600
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$3,200
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Common stock ($1par) and additional paid-in capital
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9,900
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7,300
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Retained earnings
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4,000
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(2,200)
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Total Liabilities and Equity
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$18,500
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$8,300
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Income Statement for 2016
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Sales
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$94 000
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Cost of goods sold
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55 000
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Gross profit
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$39,000
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Selling and administrative
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$ 28,800
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29,300
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Depreciation
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500
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29,300
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Operating profit
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500
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$ 9,700
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Interest expense
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100
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Earnings before tax
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$ 9 600
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Tax expense
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3 400
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Net income
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$ 6,200
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