Below are the balance sheets and income statement for Kinder Care Company. Please prepare the statement of cash flows for 2015 on both the indirect and direct bases
|
Kinder Care Company
|
|
|
|
Balance Sheet
|
|
|
|
|
December 31
|
|
|
2015
|
2014
|
|
Cash
|
135,900
|
111,200
|
|
Accounts receivable (net)
|
38,300
|
20,300
|
|
Inventory
|
35,000
|
26,000
|
|
Long-term investments
|
-
|
20,000
|
|
Property, plant & equipment
|
216,500
|
150,000
|
|
Accumulated depreciation
|
(57,700)
|
(25,000)
|
|
|
368,000
|
302,500
|
|
|
|
|
|
Accounts payable
|
17,000
|
35,500
|
|
Accrued liabilities
|
21,000
|
27,000
|
|
Long-term notes payable
|
70,000
|
50,000
|
|
Common stock
|
185,000
|
145,000
|
|
Retained earnings
|
75,000
|
45,000
|
|
|
368,000
|
302,500
|
|
Sales Revenue........................................................
|
$ 512,000
|
|
Cost of goods sold................................................
|
291,000
|
|
Gross margin .......................
|
221,000
|
|
Operating expenses................................................
|
91,500
|
|
Pre-tax operating income
|
129,500
|
|
Gain on sale of investments
|
15,000
|
|
Pre-tax income
|
|
144,500
|
|
Tax
|
42,000
|
|
Net income...............................................................
|
$ 102,500
|
|
|
|
|
Additional data:
|
|
1
|
Depreciation on plant assets for the year, $32,700.
|
|
2
|
Sold the long-term investments for $35,000.
|
|
3
|
Purchased machinery costing $66,500, issued note for $20,000 and paid remainder in cash.
|
|
4
|
Paid a $40,000 long-term note payable by issuing common stock.
|
|
5
|
Issued additional long-term notes payable during the year.
|