Refer to the information reported about Kite Corporation in Problem 16-1B.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was $57,000.
b. Accounts receivable decreased.
c. Merchandise inventory decreased.
d. Prepaid expenses decreased.
e. Accounts payable decreased.
f. Depreciation expense was $36,600.
g. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash. This yielded a loss of $2,100.
h. Purchased equipment costing $113,250 by paying $38,250 cash and (i.) by signing a long-term note payable for the balance.
j. Borrowed $6,000 cash by signing a short-term note payable.
k. Paid $45,000 cash to reduce the long-term notes payable.
l. Issued 3,000 shares of common stock for $11 cash per share.
m. Declared and paid cash dividends of$63,000.

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KITE CORPORATION Comparative Balance Sheets December 31, 2011 and 2010 2011 2010 KITE CORPORATION Income Statement For Year Ended December 31,2011 $136,500 71,550 ...454,500 490,200 Prepaid expenses ..*.17,100 278,250 108,750) 9,200 Sales.. .+. $1,083,000 85,000 498,000 00Cost of goods sold Accum. depreciation--Equipment .· Total assets.. Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par.. Paid-in capital in excess -(93,000) $794,700 Gross profit. Depreciation expense Other expenses 36.600 392.850 $117450 $123,450 17250 112,500 465,000 450,000 Other gains (losses) Total operating expenses 429,450 68,550 2,100 66,450 9.450 $ 57,000 Loss on sale of equipment of par, common stock Retained earnings Total liabilities and equity Income before taxes .. 121,500 27,500 ncome taxes expense 18,000 .$851.700 $794,700 Net income...