Kutcho Copper Corp. began operations on January 1, 2013. Its post-closing trial balance at
December 31, 2013 and 2014, is shown below along with some other information.

Other information regarding Kutcho Copper Corp. and its activities during 2014:
1. Assume all accounts have normal balances.
2. Share dividends were declared and issued during the year.
3. Equipment was sold for cash equal to its book value.

Required
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2014.
Analysis Component: Kutcho€™s comparative post-closing trial balance shows that Receivables, Prepaid Insurance, Accumulated Depreciation, Accounts Payable, Common Shares, and Retained Earnings increased during 2014, while Equipment, Salaries Payable, Income Tax Payable, and Long-Term Notes Payable decreased during the same period. Explain what most likely caused the changes in theseaccounts.

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Kutcho Copper Corp. Post-Closing Trial Balance Kutcho Copper Corp Income Statement For Year Ended December 31, 2014 (millions) (millions) December 31 2014 2013 $ 75 350 20 1,240 745 85 70 45 250 1,655 200 125 Account Revenues: Consulting revenue . Expenses $8,750 Receivables 500 60 Prepaid insurance Equipment. 535 Accumulated depreciation. 360 1,600 400 350 7,050 $1,700 Salaries payable. Income tax payable.. Long-term notes payable 20 85 175