(Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter I through SP12. Kate has just completed her first year running Kate's Cards. She has been SERIAL PROBLEM: KATE'S CARDS prepaing monthly incom statements and balance sheets, so she knows that her company has been profithng monh cash in the bank. She has not, however, prepared a statement of cash f and the year-end income statement and balance sheet and asks that you prepare a stae Provides for Kate's Cards. owKnd tht ate statement of cash ds Additional information: I. There was no disposals of equipment during the year 2. Dividends in the amount of $1,300 were paid in cash during the year. 3. Prepaid expenses relate to operating expenses. Required a. Prepare a statement of cash flows for Kate's Cards for the year ended August 31, 2016 the indirect method. Hint: Since this was Kate's first year of operations, the begi sheet account balances were zero. Chapter 12 Sattof Csh Flows 21 have no e ffect pany in Prob- sold Company in Total operating expenses income from operations ncome before income tax noome tax expense 25,400 Company in cash paid hases only KATE'S CARDS Balance Sheet As ot August 31, 2016 ompany in Current assets Accounts receivable Prepaid insurance Total current assets 11,000 16,000 cash paid Equipment 17500 Total assets . .. $ 6.200 1250 Current liabi ties Unearned revenue .. is with flows there 15.000 Total current liabilties Note payable Total liabilities. Stockholders' equity Common stock Additional paid-in-capital.. Preferred stock.... Retained earnings. Total stockholders' equity you 24,350 sh 9,500 15,200 30,200 Total liabilities an stockholders' equity. alance