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Oliver Company provided the following information for the years 2015 and 2016:

Oliver Company provided the following information for the years 2015 and 2016:


Oliver Company 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


Oliver Company Comparative Balance Sheets At December 31, 2015 and 201620152016Assets

2015 2016

Cash 24,600 64,600

Accounts Recivable 5,400 9,200

Inventory 8,000 6,000

Property, Plant & Equipment 160,000 175,000

Accumulated Depreciation (18,000) (20,000)

Land 20,400 47,000

Total Assets 200,400 281,800


Liabilities and Equities


Accounts Payable 8,600 10,000

Mortgage Payable -- 40,000

Stockholders' Equity 191,800 231,800

Total Liabilities and Equities 200,400 281,800


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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