Calculate certain operating information for direct method (Learning Objective 4) 5–10 min.

Inland Medical Supply, Inc., reported the following financial statements for 2014:

Inland Medical Supply, Inc.

Income Statement Year Ended December 31, 2014 Revenue:

Sales Revenue Expenses:

Cost of Goods Sold Depreciation Expense Other Expenses Total Expense Net Income

(in thousands)

$684 587

$ 97

$334 61 192 Inland Medical Supply, Inc.

Comparative Balance Sheet December 31, 2014 and 2013 Current:

Cash Accounts Receivable Inventory Prepaid Expenses Long-Term Investments Fixed Assets, Net Total Assets

$ 10 43 84 4

91 180

$412 LIABILITIES STOCKHOLDERS’

EQUITY Current:

Accounts Payable Salaries Payable Accrued Liabilities Long-Term Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders’ Equity ASSETS

$ 25 63 77 10 72 226

$473 2014 2013

$ 32 11 9

75 30 255

$412

$ 55 21 4

62 41 290

$473 2014 2013

(in thousands)

Use the information in Inland Medical Supply, Inc.’s financial statements to compute the following:

1. Collections from customers 2. Payments for inventory AppendixLO1