15. Kazaam Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year. (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's statements of financial position and income statement follow. 2014 KAZAAM COMPANY Comparative Statements of Financial Position December 31, 2014 and 2015 2015 Assets Cash $ 49,800 Accounts receivable 65,860 Merchandise inventory 277,500 Prepaid expenses 1,000 Equipment 157,500 Accum depreciation Equipment (36,250) Total assets $ 515,410 $ 73,500 58,000 252,500 1,600 106,500 (46,000) $ 446,100 Liabilities and Equity Accounts payable Sho-term notes payable Long-term notes payable Share capital-Ordinary, S5 par value Share premium-Ordinary Retained earnings Total liabilities and equity $ 47 860 12.000 62,500 162,250 34,500 196.300 $ 110,000 7000 48.500 150.750 0 129,850 $ 515,410 $ 446 100 $ 583,000 282,000 301,000 KAZA COMPANY Income Statement For Your Ended December 31, 2016 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 20,000 Other expenses 132,800 Other gains (losses) Loss on sale of equipment Profit before tax Income tax expense Net profit 152,800 5,500 142,700 24,250 S 118,450 Additional Information on Year 2015 Transactions a. The loss on the cash sale of equipment was $5,500 (details in b) b. Sold equipment costing $46,875, with accumulated depreciation of $29,750, for $11,625 cash c. Purchased equipment costing 597 875 by paying $35,000 cash and signing a long-term note payable for the balance d. Borrowed $5.000 cash by signing a short-term note payable e. Paid $48.875 cash to reduce the long-term notes payable f.issued 2.300 ordinary shares for $20 cash per share g. Declared and paid cash dividends of $52,000 The company's management wants to classify payments for dividends as financing activities Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method Disclose any noncash investing and financing activities in a note (Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) KAZAAM COMPANY for dividends as financing activities Required: 1. Prepare a complete statement of cash flows, report its operating activities using the indirect method. Disclose any noncash investing and financing activities in a nole. (Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) KAZAAM COMPANY Statement of Cash Flows For Year Ended December 31, 2015 Cash flows from operating activities (Click to select) Adjustments to reconcile profit to net cash provided by operating activities: (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) HIO Cash generated from operations (Click to select) Net cash (Click to select) operating activities Cash flows from investing activities Click to select) (Click to select) Net cash (Click to select) investing activities Cash flows from financing activities (Click to select) Click to select) (Click to select) (Click to select) Net cash (Click to select) financing activities
