Kinkaj Technologies, Inc. has the following financial statements for the fiscal year ending 31OCT2015:

Additional Information:

During the fiscal year ending 31OCT2015 equipment was acquired for $20,000 cash; the firm also sold equipment that had costed $9,500, with a book value of $5,500, for $3,000 cash.

On January 31^st, 2015 the firm converted $100,000 of 10% convertible bonds issued at face value with interest payment dates of April 30 and October 31 into 2,000 shares of Kinkaj $40 par value common stock. Said stock had a market value of $50 at the date of conversion.

Kinkaj paid dividends of $8,000 during 2015.

Kinkaj issued an additional 100 shares of common stock for cash during 2015.

Required:

As per SFAS No. 95 of 1988, prepare a Statement of Cash Flows for Kinkaj for the year ended October 31^st, 2015 using the direct method.

As per SFAS No. 95 of 1988, reconcile operational cash flows using the indirect method for Kinkaj for the year ended October 31^st, 2015.

Kinkaj Technologies, Inc. Income Statement For the Year Ended October 31, 2015 300,000 Sales Revenue CGS Gross Profit 180,000 Operating Expenses Salaries Operating Income Other Revenues/Expenses 50,000 6,000 56,000 124,000 Loss on sale of equipment Interest Expense 2,500 Income Before Taxes 119,000 Income Tax Expense Net Income 71,000 Retained Earnings Subtotal Cash dividends paid November 1, 2014 158,000 Retained Earnings October 31t, 2015 $150,000