Problem 13-1B Statement of cash flows indirect method) A1 P1 P2 P3 Kite Corporation, 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 2015 KITE CORPORATION Income Statement For Year Ended December 31, 2015 $1.001,000 S45,000 78.000 Cost of goods old Gross proft Operating empentes Depreca , Other expenses Tocal operare expenses KITE CORPORATION Comparative Statements of Financial Position December 31, 2015 and 2014 2014 Asseta Cat $14.500 $ 71.550 Account recevable 74100 750 Merchandisery 154.500 10.200 Prepaid expenses 17.100 18.200 Con 27.2.50 216000 Acum depreden tot (LOL) (1.000 3351.700 174709 Liabilities and Equity Aruni peable $117.450 $12,00 Short 17.250 21 Lorrare neces pytle 112.500 Share Orary 5 plus 445.000 45,000 Share premium-Ordinary 10,000 Redering 121.500 Toolbos FEST.700 7700 To 14.400 12.50 290 SSC Other pisos) Lontongan Proft before Incorper Nuspro 2.100 65.450 240 57000 Chapter 1) Satement of Cash Flows Adablonal Information on Year 2015 Transactions 4. The loss on the cash sale of equipment was $2.100 (details in b). $45 for the balance Som equipment conting $51.006, with accumulated depreciation of 520830, for $28.080 cash Parchoved equipement conting $113,250 by paying $16.250 cash and signing a long term note payable Borrowed $6.000 cash by signing a short-term note puyable. Poid 545,000 cash to reduce the long-term soles payahle. Bad 3.000 ordinary shares for 511 cash per share. Declared and paid cah dividends of ww. The company's management wants to claily numer for dividends as financing activities yments Reguled Check Nec om person 1. Prepare a complete statement of cash flows report its operating activities using the indirect metod det 14.10 Disclose my moncash investing and financing activities in a note Als Component 2. Analyse and discuss the statement of cash flows prepared in part I giving special attention to the wi dom of the cash dividend payment pe here to search 101 ING