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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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