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.
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Kinder Care Company
Balance Sheet
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December 31
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2015
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2014
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Cash
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135,900
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111,200
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Accounts receivable (net)
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38,300
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20,300
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Inventory
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35,000
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26,000
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Long-term investments
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-
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20,000
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Property, plant & equipment
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216,500
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150,000
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Accumulated depreciation
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(57,700)
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(25,000)
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368,000
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302,500
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Accounts payable
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17,000
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35,500
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Accrued liabilities
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21,000
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27,000
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Long-term notes payable
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70,000
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50,000
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Common stock
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185,000
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145,000
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Retained earnings
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75,000
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45,000
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368,000
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302,500
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Sales Revenue
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$ 512,000
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Cost of goods sold
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291,000
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Gross margin
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221,000
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Operating expenses
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91,500
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Pre-tax operating income
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129,500
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Gain on sale of investments
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15,000
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Pre-tax income
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144,500
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Tax
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42,000
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Net income
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$ 102,500
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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.