The balance sheet and the income statement for the year ended December 31, 2016 for Johnson Inc. follows. During 2016, cash of 15,000 was paid for building and equipment, 10,000 was paid for retirement of notes payable, and $68,000.was paid for cash dividends. . During 2016, cash was received from issuance of stock.
|
Balance Sheet
As of December, 31.
|
|
|
2016
|
2015
|
|
Cash
|
$ 25,000
|
$ 20,000
|
|
Accounts receivable, net
|
60,000
|
70,000
|
|
Inventory
|
80,000
|
100,000
|
|
Land
|
50,000
|
50,000
|
|
Building and equipment
|
130,000*
|
115,000
|
|
Accumulated depreciation
|
(85,000)
|
(70,000)
|
|
Total assets
|
$260,000
|
$285,000
|
|
|
|
|
|
Accounts payable
|
$ 30,000
|
$ 35,000
|
|
Income taxes payable
|
4,000
|
3,000
|
|
Wages payable
|
5,000
|
3,000
|
|
Current notes payable
|
50,000**
|
60,000
|
|
Common stock
|
110,000***
|
100,000
|
|
Retained earnings
|
61,000
|
84,000
|
|
Total liabilities and stockholders's equity
|
$260,000
|
$285,000
|
|
Income Statement
For the Year Ended December 31, 2016
|
|
|
|
Sales
|
|
$500,000
|
|
Less expenses:
|
|
|
|
Cost of goods sold
|
$330,000
|
|
|
Selling and administrative expenses
|
90,000
|
|
|
(includes depreciation of $15,000)
|
|
|
|
Interest expense
|
5,000
|
|
|
Total expenses
|
|
425,000
|
|
Income before taxes
|
|
$ 75,000
|
|
Income tax expense
|
|
30,000
|
|
Net income
|
|
$ 45,000
|
(Required) Prepare the statement of cash flows for 2016. Present cash flows from operations using the indirect approach.