Aunt Rhea Corporation

Question

Income Statement
For the Year Ended December 31, 2015
Service Revenue $ 900,000
Operating Expenses 700,000
Net Income before Income Tax $ 200,000
Gain on Investment Sale 10,000
Net income Before Income Taxes $ 210,000
Income Tax Expense 90,000
Net Income $ 120,000

The following partial balance sheet information is also available for 2015 and 2014:

2015 2014

Cash $ 655,000 $ 400,000
Accounts Receivable 120,000 100,000
Merchandise Inventory 40,000 50,000
Supplies 10,000 20,000
Investments 30,000 110,000
Accounts Payable 70,000 60,000
Income Taxes Payable 10,000 15,000

In addition the following transactions took place during 2015:

1. Common stock was issued for $100,000 cash.
2. Long-term investments were sold for $55,000.
3. Cash dividends of $80,000 were paid.
4. The listed operating expenses included a $25,000 loss on the sale of investments and depreciation of $30,000..

Required: Prepare in good form, a cash flow statement for 2015 using the indirect method for Aunt Rhea Corporation.