The following comparative balance sheets and income statement are available for AddieMae Inc. Prepare a statement of

Question

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. Balance Sheet December 31 2016 2015 Cash $3,300 $1,000 Accounts Receivable (net) 1,100 600 Inventory 11,200 4,300 Total Current Assets $15,600 $5,900 Plant and Equipment $3,000 $2,300 Less Accumulated Depreciation (1,300) (800) Plant and Equipment (net) $1,700 $1,500 Long-term Investments 1,200 900 Total Assets $18,500 $8,300 Accounts Payable $3,300 $2,500 Accrued Liabilities 700 600 Income Tax Payable 400 100 Total Current Liabilities $4,400 $3,200 Long-Term Debt 200 0 Total Liabilities $4,600 $3,200 Common Stock ($1 par) abd additional paid-in capital 9,900 7,300 Retained Earning 4,000 (2,200) Total Liabilities and Equity $18,500 $8,300 Income Statement for 2016 Sales $94,000 Cost of Goods Sold 55,000 Gross Profit $39,000 Selling and Administrative $28,800 Depreciation 500 29,300 Operating Profit

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The following comparative balance sheets and income statement are available for AddieMae Inc

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Archived Solution

Balance Sheet	December 31
	2016	2015
Cash	$3,300	$1,000
Accounts Receivable (net)	1,100	600
Inventory	11,200	4,300
Total Current Assets	$15,600	$5,900
Plant and Equipment	$3,000	$2,300
Less Accumulated Depreciation	(1,300)	(800)
Plant and Equipment (net)	$1,700	$1,500
Long-term Investments	1,200	900
Total Assets	$18,500	$8,300
Accounts Payable	$3,300	$2,500
Accrued Liabilities	700	600
Income Tax Payable	400	100
Total Current Liabilities	$4,400	$3,200
Long-Term Debt	200	0
Total Liabilities	$4,600	$3,200
Common Stock ($1 par) abd additional paid-in capital	9,900	7,300
Retained Earning	4,000	(2,200)
Total Liabilities and Equity	$18,500	$8,300

Income Statement for 2016
Sales		$94,000
Cost of Goods Sold		55,000
Gross Profit		$39,000
Selling and Administrative	$28,800
Depreciation	500	29,300
Operating Profit		$9,700
Interest Expense		100
Earning before tax		$9,600
Tax Expense		3,400
Net Income		$6,200