Use the McKnight Exercise Equipment data in Exercise. In Exercise, McKnight Exercise Equipment, Inc. reported the following financial statements for 2015: Prepare the companys statement

Use the McKnight Exercise Equipment data in Exercise.

In Exercise, McKnight Exercise Equipment, Inc. reported the following financial statements for 2015:

Prepare the company’s statement of cash flows—indirect method—for the year ended December 31,2015.

MCKNIGHT EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: 714,000 347,000 367,000 Depreciation Expense Other Operating Expenses Total Operating Expenses 52,000 205,000 257,000 S 110,000 Net Income MCKNIGHT EXERCISE EQUIPMENT, INC. Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 19,000 18,000 54,000 81,000 49,000 89,000 Long-term Assets: Flants Assets 265,200 (44200) 95,000 470.000 219,600 (36,600) 77,000 $ 416,000 Accumulated Depreciation -Plant Assets Total Assets Liabilities Current Liabilities: Accounts Payable Salaries Payable 73,000 72,000 5,000 2,000 Long-term Liabilities: Notes Payable 59,000 134,000 66,000 Total Liabilities 143,000 Stockholders Equity Common Stock Retained Earnings Total Stockholders' Equity Total uabilities and Stockhoiders Equity 34,000 239,000 273,000 470,000 416,000 47,000 289,000 336,000