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Below Is the Income Statement and Balance Sheet of Closely Income Statement for year ended September 30 , (in thousands)\text {Income Statement for year ended September 30 , (in thousands)}

Question 15

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Below is the income statement and balance sheet of Closely Held Corporation. From this information prepare a statement of cash flows for the year ended September 30, 2005. Income Statement for year ended September 30 , (in thousands)\text {Income Statement for year ended September 30 , (in thousands)}
20042005 Revenues $500,000$512,000 Cost of sales (395,000)(404,480) Gross margin 105,000107,520 Selling and administrative (60,000)(61,440) Income before interest and taxes 45,00046,080 Interest expense (9,900)(12,320) Income before income taxes 35,10033,760 Income tax (12,812)(12,322) Net income $22,288$21,438\begin{array}{lrr}&2004&2005\\\text { Revenues } & \$ 500,000 & \$ 512,000 \\\text { Cost of sales } & (395,000) & (404,480) \\\text { Gross margin } & 105,000 & 107,520 \\\text { Selling and administrative } & (60,000) & (61,440) \\\text { Income before interest and taxes } & 45,000 & 46,080 \\\text { Interest expense } & (9,900) & (12,320) \\\text { Income before income taxes } & 35,100 & 33,760 \\\text { Income tax } & (12,812) & (12,322) \\\text { Net income } & \$ 22,288 & \$ 21,438\end{array}
 Below is the income statement and balance sheet of Closely Held Corporation. From this information prepare a statement of cash flows for the year ended September 30, 2005.  \text {Income Statement for year ended September 30 , (in thousands)}   \begin{array}{lrr} &2004&2005\\ \text { Revenues } & \$ 500,000 & \$ 512,000 \\ \text { Cost of sales } & (395,000) & (404,480) \\ \text { Gross margin } & 105,000 & 107,520 \\ \text { Selling and administrative } & (60,000) & (61,440) \\ \text { Income before interest and taxes } & 45,000 & 46,080 \\ \text { Interest expense } & (9,900) & (12,320) \\ \text { Income before income taxes } & 35,100 & 33,760 \\ \text { Income tax } & (12,812) & (12,322) \\ \text { Net income } & \$ 22,288 & \$ 21,438 \end{array}

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