Refer to the information for Kitchenware Inc. in AP5€“ 5.

In Problem

Required:
1. Prepare a statement of cash flows for Kitchenware Inc. for the year ended December 31, 2015. Use the direct method to report cash flows from operating activities.
2. Discuss the importance of the statement of cash flows to users of financial statements. What additional information does it provide that is not reported in the other financial statements? Explain by referring to the statement that you prepared in (1) above.

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KITCHENWARE INC. Statements of Finaacial Position as at Decamber 31 (in thousands of dollars) 2014 2013 Assets Current assets Cash $ 1.000 3.400 8000 10,600 30,000 26,000 (12000) 2,000 56,300 10,000 59,000 (24,000) 2,000 $106.300 Short-term investaments Trade acoounts receivable Inventories Funiture and fixtures, at cost Less: Accumulated depreciaton Investments Totdl assets $69,000 Liabilites and Shareholders' Equity Current liabilities Bank loan Trade accounts payable Dividends payable $ 18.000 17,000 $ 8,000 13,100 600 21,700 Total current liab lities Non-current iabilities 35,000 Mortgage notes payable Total liablities Shareholders' equity 22000 19300 25300 47.300 $69,000 24.000 Contributed capital Retained eamings Totl shareholders'equity Total liabilities and shareholders equity $106.300 KITCHENWARE INC. Statement of Earnings For the Years Ended December 31 2014 $980,000 2013 Sales revenue Cost of saies Gross profit Operating expences $80,.000 1640000 560000) 320,000 340,000 Depreciation 15.200 (12.000) 298800 (288000) 20,000 Selling and general Earnings from operations Interest expense Loss on sale of funiture Gain on sale of investments Earnings before income taxes 26,000 9,600) (1.200 (3.200) 800 16,000 16,800