Using the financial information provided for Kensington, Inc - Prepare a Statement of Cash Flows using the Indirect Method.

Using the financial information provided for Kensington, Inc - Prepare a Statement of Cash Flows using the Indirect Method. Kensington, Inc. Income Statement For the Year Ended December 31, 2015 Sales Less: Cost of Goods Sold Gross Margin Operating Expenses Sales and Administrative Expenses Depreciation Expense Other Expenses Total Operating Expenses Operating Income Other Revenue/Expenses Interest Revenue Rent Revenue Dividend Revenue Interest Expense Total Other Revenue/Expenses Income before Taxes Income Taxes Net Income $ $ $ $ $ $ 875,000 (577,500) 297,500 $ $ (157,500) 140,000 $ $ $ $ (8,750) 131,250 (52,500) 78,750 $ $ $ $ 147,000 78,750 (119,000) 106,750 (131,250) (26,250) - $ $ $ $ (8,750) Kensington, Inc. Statement of Retained Earnings For the Year Ended December 31, 2015 Beginning Retained Earnings Balance Add: Net Income Less: Dividends Ending Retained Earning Balance PROBLEM #3 CONTINUED Kensington, Inc. Balance Sheet For the Year Ended December 31, 2014 & 2015 2015 ASSETS 2014 Current Assets Cash Accounts Receivable Interest Receivable Rent Receivable Dividend Receivable Inventory Prepaids Total Current Assets $ $ $ $ $ $ $ $ 43,750 105,000 140,000 288,750 $ $ $ $ $ $ $ $ 35,000 122,500 175,000 332,500 Long-term Assets Equipment Building Land Other Long Term Asset 1 Other Long Term Asset 2 $ $ $ $ $ 52,500 175,000 87,500 - $ $ $ $ $ 26,250 175,000 87,500 - Accumulated Depreciation Total Long-term Assets $ $ (148,750) 166,250 $ $ (122,500) 166,250 TOTAL ASSETS $ 455,000 $ 498,750 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities Accounts Payable Accruals Salary & Wage Payable Interest Payable Taxes Payable Short-term Notes Payable $ $ $ $ $ $ 52,500 8,750 7,000 - $ $ $ $ $ $ 61,250 5,250 5,250 - Total Current Liabilities $ 68,250 $ 71,750 Long-term Liabilities Bonds Payable Long-term Notes Payable $ $ 87,500 $ $ 105,000 Total Long-term Liabilities $ 87,500 $ 105,000 TOTAL LIABILITIES $ 155,750 $ 176,750 Common Stock Retained Earnings $ $ 192,500 106,750 $ $ 175,000 147,000 TOTAL STOCKHOLDER'S EQUITY $ 299,250 $ 322,000 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 455,000 $ 498,750 STOCKHOLDERS' EQUITY