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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
2015 2014
Assets
Cash $ 12,700 $ 20,700
Short-term investments 107,900 68,100
Trade receivables 86,500 40,800
Inventories, at cost 61,400 43,700
Prepayments 7,700 13,400
Land 59,800 88,500
Property, plant, and equipment, net 294,800 197,500
Intangible assets 27,700 35,400
$ 658,500 $ 508,100
Liabilities and Shareholders Equity
Trade payables $ 20,700 $ 47,400
Income tax payable 13,400 4,700
Accrued liabilities 13,700 -0-
Long-term notes payable 147,000 224,000
Contributed capital 274,000 78,500
Retained earnings 189,700 153,500
$ 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 expenseintangible assets 7,700
Depreciation expenseproperty, plant, and equipment 36,700
Operating expenses 258,000
Interest expense 15,700 785,100
Earnings before income taxes 175,900
Income tax expense 52,770
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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