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The comparative statements of financial position of Mikos Inc. as at December 31, 2014 and 2015, and its statement of earnings for the year ended

The comparative statements of financial position of Mikos Inc. as at December 31, 2014 and 2015, and its statement of earnings for the year ended December 31, 2015, are presented below:

MIKOS INC.
Comparative Statements of Financial Position
December 31
20152014
Assets
Cash$12,700$20,700
Short-term investments107,90068,100
Trade receivables86,50040,800
Inventories, at cost61,40043,700
Prepayments7,70013,400
Land59,80088,500
Property, plant, and equipment, net294,800197,500
Intangible assets27,70035,400
$658,500$508,100
Liabilities and Shareholders? Equity
Trade payables$20,700$47,400
Income tax payable13,4004,700
Accrued liabilities13,700-0-
Long-term notes payable147,000224,000
Contributed capital274,00078,500
Retained earnings189,700153,500
$658,500$508,100

MIKOS INC.
Statement of Earnings
For the Year Ended December 31, 2015
Sales$961,000
Cost of sales$467,000
Amortization expense?intangible assets7,700
Depreciation expense?property, plant, and equipment36,700
Operating expenses258,000
Interest expense15,700 785,100
Earnings before income taxes175,900
Income tax expense52,770
Net earnings$123,130

Additional information is as follows:
a.

Land was sold for cash at its carrying amount.

b.

The short-term investments will mature in February 2016.

c.

Cash dividends were declared and paid in 2015.

d.

New equipment with a cost of $169,700 was purchased for cash, and old equipment was sold at its carrying amount.

e.

Long-term notes of $28,500 were paid in cash, and notes of $48,500 were converted to shares.

Required:
1.

Prepare a statement of cash flows for Mikos Inc. for the year ended December 31, 2015 by using the indirect method.(Negative amounts should be indicated with a minus sign.)

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