The balance sheets for King Company showed the following information. Additional information concerning transactions and events during 2015 are presented below:

King Company

Balance Sheet

($ in thous)

__December 31

2015 2014

Cash $12,700 $10,200

Accounts Receivable 53,400 20,300

Inventory 25,000 29,000

Investments Trading Securities (Net) 14,000 13,000

Long Term Investments - Common Stock 460,000 315,000

Property, Plant & Equipment 266,500 150,000

Accumulated Depreciation (35,600) (25,000)

Total Assets $796,000 $512,500

Accounts Payable $16,000 $26,500

Other Accrued Liabilities 28,000 17,000

Dividends Payable 35,000 -0-

Bonds Payable 150,000 100,000

Common Stock 100,000 50,000

Additional Paid-Capital Common Stock 200,000 100,000

Retained Earnings 367,000 219,000

Treasury Stock (100,000) -0-

Total Liabilities and Stockholders Equity $796,000 $512,500

Additional data for 2015:

($ in thous)

Net Income for the year, $250,000

Plant Assets that cost $15,000 were sold for $5,000. The gain of $2,000 on the sale was reported in net income.

Dividends declared were $102,000

During the year common stock was issued at an amount above par.

Recorded an adjusting entry at year end for a $1,000 unrealized gain on Trading securities. (note: the account Investments Trading Securities is a net amount with the Securities Fair Value Adjustment account)

King uses the Equity Method of Accounting for Investments in Common Stock. During 2015, King reported $10,000 of equity income.

Instructions: Prepare a Statement of Cash Flows (use the indirect method) for 2015 for the King Company.

Statement of Cash Flows Account Analysis Worksheet

($ in thous)

Assets	2015	2014	Change
Cash	$12,700	$10,200	$2,500
Accounts Receivable	53,400	20,300	33,100
Inventory	25,000	29,000	(4,000)
Investments Trading Securities (net)	14,000	13,000	1,000
Long Term Investments Common Stock	460,000	315,000	145,000
Property, Plant & Equipment	266,500	150,000	116,500
Accumulated Depreciation	(35,600)	(25,000)	(10,600)
Total Assets	$796,000	$512,500	$283,500
Liabilities and Stockholders Equity
Accounts payable	$16,000	$26,500	$(10,500)
Other accrued liabilities	28,000	17,000	11,000
Dividends payable	35,000	--	35,000
Bonds payable	150,000	100,000	50,000
Common stock	100,000	50,000	50,000
Additional paid-in-capital, common stock	200,000	100,000	100,000
Retained earnings	367,000	219,000	148,000
Treasury stock	(100,000)		(100,000)
Total liabilities and equity	$796,000	$512,500	$283,500

King Company

Statement of Cash Flows

For the year ended December 31, 2015

Net income
Net Increase to cash
Cash Balance 12/31/2014
Cash Balance 12/31/2015