Q38

Refer to the financial statement information from Kenwood Corporation. Prepare the statement of cash flows. Use the indirect method. 12/31/15 12/31/14 Kenwood Corporation Statements of Financial Position for the years ended Current Assets Cash Accounts receivable Inventories Total Current Assets $119,000 210,000 260.000 589,000 $90,000 140,000 220.000 450,000 Land Plant and equipment Accumulated depreciation Total Assets 349,000 666,000 (173.000) $1,431,000 200,000 666,000 (100.000) $1,216,000 Current Liabilities Accounts payable Salaries payable Total Current Liabilities $490,000 20.000 510,000 $480,000 30.000 510,000 Bonds payable Total Liabilities 180,000 $690,000 180.000 $690,000 Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity $444,000 297,000 $741,000 $380,000 146,000 $526,000 $1,000,000 Kenwood Corporation Incoine Statement for the year ended December 31, 2015 Sales (all are credit sales) Expenses: Cost of goods sold Salaries Depreciation Interest Net income (560,000) (190,000) (73,000) (24.000) 153,000 Additional Information: Kenwood issued 8,000 shares of common stock for $64.000 cash on September 1, 2015. Kenwood declared and paid a $2,000 cash dividend on November 30, 2015. The tax rate is 0% in all years. Kenwood purchased land, paying $149,000 cash on September 15, 2015. Kenwood recorded an impairment charge on December 31, 2015, relating to equipment