Ozark Corporation reported net income of $100,000 for 20X5. The income statement revealed sales of $1,000,000; gross profit of $520,000; selling and administrative costs of $340,000; interest expense of $20,000; and income taxes of $60,000.
The selling and administrative expenses included $25,000 for depreciation. No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs. All accounts payable included in the balance sheet relate to inventory purchases. The change in retained earnings is attributable to net income and dividends. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash.
Using the direct approach, prepare a statement of cash flows (excluding the supplemental reconciliation of net income to operating cash flow) for Ozark for the year ending December 31, 20X5. Comparative balance sheets for Ozark follow.
OZARK CORPORATION
Balance Sheet
December 31, 20X4 and 20X5

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Assets 20X5 20X4 Cash 458,700 471,450 Accounts receivable 199,250 171,500 248,600 Inventories 278,800 Prepaid insurance 13,000 11,000 Land 250,000 250,000 Building and equipment 1,500,000 1,300,000 Less: Accumulated depreciation (205,000) (180,000) Total assets 2,464,550 2,302,750 Liabilities Accounts payable 85,700 93,400 Interest payable 15,000 10,500 Income taxes payable 22,000 8,000 Stockholders' equity Common stock 710,000 700,000 Paid in capital in excess of par 900,000 990,000 Retained earnings 646,350 586,350 Total liabilities and equity 2,464,550 2,302,750