KAZAAM COMPANY Income Statement For Year Ended December 31, 2015 $ 1,985,000.00 (1.000.000,00) 985,000.00 75,000.00 546,000.00 Sales Cost of goods sold Gross profit Operating expenses Depreciaton expense Other expenses Income from Operations before tax Other gains (losses) Loss on sale of equipment Gain on sale of equipment Income before taxes Income taxes expense Net Income (621,000.00) 364,000.00 (20,500.00) 14,000.00 (6,500.00) 357,500.00 (97,000.00) 260,500.00 2014 KAZAAM COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 Assets Cash $ 215,500.00 Accounts receivable 260,000.00 Merchandise inventory 1,096,000.00 Prepaid expenses 37,500.00 Equipment 569,450.00 Accum denreciation Foulament (174.750.00) Total assets $ 2,002,700.00 Liabilities and Equity Accounts payable $ 352,500.00 Short-term noles payable 40,000.00 Income Taxes payable 16,000.00 Long-term noles payable 375,000.00 Common stock, $5 par value 675,000.00 Paid-in capital in excess of par, common sock 130,000.00 Retained earnings 414,200.00 Total liabilities and equity 2,002,700.00 206,500.00 182.250.00 910,000.00 55,000.00 420,000.00 (176,000.00) 1,597,750.00 $ 466,500.00 25,000.00 30,000.00 215,000.00 625,000.00 236,250.00 1,597,750.00 ADDITIONAL INFORMATION The Company sold two equipment during the period. The frst equipment had a cost of $93,750, with accumulated depreciation of $56.250 and was sold bra loss. The second equipment was sold for a gain. The amount of the be and gain is shown on the income statement The company purchased equipment costing S313,200 by paying $100,000 cash and signing a long-term nole payable for the balance. The company borrowed $30,000 cash by signing a new short-term nole payable. REQUIRED: Prepare a complete statement of cash fows; report is operating activities using the indirect method. Prepare a complete statement of cash fows, reports operating activites using the direct method b. (1). (2)