prepare a statement of cash flows using the direct method

8.Preparation of statement of cash flows. The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2015 are presented below. Kinder Company Balance Sheet 2014 Cash 10,200 Accounts receivable (net) Inventory Longterm investments Property, plant & equipment Accumulated depreciation Accounts payable Accrued liabilities Longterm notes payable Common stock Retained earnings December 31 2015 $ 35,900 $ 38,300 35,000 0 236,500 (37,700) $308,000 $ 17,000 21,000 70,000 130,000 70,000 $308,000 20,300 42,000 15,000 150,000 (25,000) $212,500 $ 26,500 17,000 50,000 90,000 29,000 $212,500 Additional data: 1. Net income for the year 2015, $71,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the longterm investments for $28,000 (assume gain or loss is ordinary). 4. Paid dividends of $30,000. 5. Purchased machinery costing $21,500, paid cash. 6. Purchased machinery and gave a $60,000 longterm note payable. 7. Paid a $40,000 longterm note payable by issuing common stock. Below is the income statement for Kinder Company. Using the income statement and the information provided above, prepare a statement of cash flows using the direct method Sales Revenue........................................................$321,000 Cost of goods sold................................................ 160,500 Gross margin ....................... 160,500 Operating expenses................................................ 60,500 Pre-tax operating income 100,000 Gain on sale of investments 13,000 Pre-tax income 113,000 Tax 42,000 Net income............................................................... 71,000