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Rachel Corporation was started in 2015 with a cash investment of $20,000. You are presented...

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Finance

Rachel Corporation was started in 2015 with a cash investment of $20,000. You are presented with the following accounts for Rachel (in thousands):

2016 2015 2016 2015
Net Sales 400 350 Retained earnings 180 130
Cost of Goods Sold 140 125 Inventory 118 85
Tax expense 55 50 Operating expenses 40 35
Long-term debt 50 0 Accounts payable 67 45
Allowance for doubtful accounts 2 1 Interest expense 15 0
Cash 25 5 Long-term deferred taxes 8 5
Depreciation expense 50 45 Plant and equipment (net) 200 100
Short-term notes payable 25 0 Accounts receivable (net) 7 10

Prepare a multiple-step income statement for both 2016 and 2015.

Prepare a classified balance sheet for both 2016 and 2015.

Was there a dividend paid in 2016? If so, what was the amount of the dividend?

For the most recent year, prepare the cash flow identity for Rachel Corporation.

For the most recent year, prepare the statement of cash flows for Rachel Corporation.

What conclusions might be drawn from what you have compiled?

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