Question
The following information applies to the questions displayed below.] In its 2015 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash
The following information applies to the questions displayed below.] In its 2015 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, 2015 2014 Cash flow from operating activities: Cash received from customers $ 197,582,040 $ 211,473,952 Cash paid to suppliers and employees (190,976,791 ) (200,174,336 ) Interest paid, net (1,413,990 ) (1,948,523 ) Income taxes paid (436,650 ) (572,250 ) Cash provided by operations 4,754,609 8,778,843 Cash flow from investing activities: Capital expenditures and acquisitions (2,853,579 ) (1,517,382 ) Expenditures for other assets (46,560 ) (140,420 ) Cash used in investing activities (2,900,139 ) (1,657,802 ) Cash flow from financing activities: Principal payments of long-term debt and lease agreements (2,212,485 ) (6,640,175 ) Addition to long-term debt and lease liability 5,967,348 1,464,847 Changes in restricted unexpended IRB cash (2,898,970 ) 0 Purchase of common stock and other capital transactions (1,635,906 ) (923,231 ) Payment of dividends (885,558 ) (1,036,968) ) Cash provided by (used in) financing activities (1,665,571 ) (7,135,527 ) Net increase (decrease) in cash 188,899 (14,486 ) Cash at beginning of year 192,615 207,101 Cash at end of year $ 381,514 $ 192,615 2015 2014 Reconciliation of net income to net cash provided by operations: Net income $ 1,772,133 $ 2,461,497 Depreciation and amortization 3,535,504 3,555,087 Deferred income taxes 208,000 347,766 Changes in assets and liabilities, net of acquisitions: Decrease (increase) in receivables (2,927,353 ) 4,150,668 Decrease (increase) in inventories (358,508 ) 6,044,490 Increase (decrease) in prepaid expenses 364,648 (95,850 ) Increase (decrease) in controlled disbursements 376,394 86,718 Increase (decrease) in accounts payable 1,798,676 (8,194,148 ) Increase (decrease) in accrued expenses (14,885 ) 420,616 Other, net 1,999 Cash provided by operations $ 4,754,609 $ 8,778,843 11. Required information Required: Assuming the decrease in accrued expenses during fiscal year 2015 included a $18,500 reduction due to taxes, compute the income tax expense for Kinney in that year. 12. Required information Required: Assuming the decrease in accrued expenses during fiscal year 2015 included a $14,300 reduction due to interest on debt, compute the interest expense (net) for Kinney in that year.
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