Using the financial information provided for Kensington, Inc Prepare a Statement of Cash Flows using the Indirect Method and Direct Methods

Kensington, Inc. Income Statement For the Year Ended December 31, 2015 s S $ 875,000 1577.500) 297,500 $ s (131,250) 126,250) 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 $ s 157.500) 140,000 S (8,750) S (8.750) 131,250 Net Income S S 152.500 78,750 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 $ > s s 147,000 78,/50 119,000) 106,750 Kensington, Inc Balance Sheet For the Year Ended December 31, 2014 & 2015 2015 2014 ASSETS Current Assets 43,750 105,000 S $ 35,000 122,500 Cash Accounts Receivable Interest Receivable Rent Receivable Dividend Receivable Inventory Total Current Assets $ $ $ $ $ $ $ 5 S s $ 140,000 288,750 175,000 332,500 $ $ S Long term Assets Equipment Building Land Accumulated Depreciation Total long term Assets $ $ 5 S $ 52,500 175,000 87,500 1148.7502 166,250 $ 26,250 175.000 87.500 122.500 166,250 $ $ 455.000 S 498,750 TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities $ $ $ Accounts Payable Salary & Wage Payable Interest Payable 52,500 8.750 7,000 $ $ $ 61.250 5.250 5.250 $ 68,250 $ 71,750 Total Current Liabilities Long term Liabilities Long term Notes Payable $ 87,500 S 105.000 S 87.500 105.000 Total Long term Liabilities $ 155,750 $ TOTAL LIABILITIES 176,750 STOCKHOLDERS' EQUITY S Common Stock Retained Earnings S 5 192,500 106.750 175,000 147.000 $ 299,250 322,000 TOTAL STOCKHOLDER'S EQUITY 155.000 $ 498,750 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY