Problem 1: From the following information for Kevin's Kennels, prepare a statement of cash flows for the year ended December 31, 2015 using both the indirect method. (Statement of Cash Flows using the Direct and Indirect method).

			Balance: 12/31/15		Balance: 12/31/14
Cash			71,900		18,900
A/R			78,000		45,000
Inventory			70,000		90,000
Prepad Insurance			3,600		2,600
Equipment			340,000		290,000
Accumulated Depreciation			80,000		20,000
Land			120,000
Security Deposits			12,000		10,000
A/P			35,000		30,000
Wage Payable			6,000		10,000
Rent Payable			8,000		4,000
Interest Payable			6,500		7,500
Taxes Payable			10,000		5,000
Note Payable			130,000		150,000
Common Stock ($1 Each)			300,000		160,000
Retained Earnings			120,000		70,000
Sales			1,200,000
Cost of Goods Sold			700,000
Wage Expense			220,000
Rent Expense			48,000
Office Expense			46,000
Depreciation Expense			60,000
Utilities Expense			15,000
Insurance Expense			6,000
Interest Expense			15,000
Income Tax Expense			27,000

The land was acquired on March 31, 2015 by exchanging 60,000 shares of common stock worth $60,000 and cash for the balance of the purchase price. The additional common stock (other than that issued for the purchase of the land) was sold on September 30, 2015 for $1 per share. The company did not sell any equipment during the year. All equipment purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. The Note Payable requires payments of $20,000 principal plus interest at 10% on June 30th of each year. Current stock price (12/31/15) is $4.00 per share.