Refer to the information for Oliver Company on the previous page.
Oliver Company provided the following information for the years 2015 and 2016:
Oliver Company
Income Statement
For the Year Ended December 31, 2016
Sales.....................................................$ 75,000
Cost of goods sold.....................................(20,000)
Depreciation expense...................................(2,000)
Other expenses........................................(13,000)
Net income.............................................$ 40,000

Required:
1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows.
2. Prepare a schedule that provides operating cash flows for the year 2016 using the indirect method.
3. Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 2016. Given this information and assuming that the operating cash flows for 2016 are $41,000, calculate the ending balance for accounts receivable.

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Oliver CCompany Comparative Balance Sheets At December 31, 2015 and 2016 2015 2016 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Land S 24.600 5,400 8,000 160,000 (18,000) 20.400 200,400 S 64,600 9,200 6,000 175,000 (20,000) 47,000 S281,800 Total assets Liabilities and equity Accounts payable Mortgage payable Stockholders' equity S 8,600 S 10,000 40,000 231,800 281.800 191.800 S200.400 Total liabilities and equity