Use the McKnight Exercise Equipment data in Exercise.

In Exercise, McKnight Exercise Equipment, Inc. reported the following financial statements for 2015:

Prepare the company’s statement of cash flows—indirect method—for the year ended December 31,2015.

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MCKNIGHT EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2015 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: 714,000 347,000 367,000 Depreciation Expense Other Operating Expenses Total Operating Expenses 52,000 205,000 257,000 S 110,000 Net Income MCKNIGHT EXERCISE EQUIPMENT, INC. Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 19,000 18,000 54,000 81,000 49,000 89,000 Long-term Assets: Flants Assets 265,200 (44200) 95,000 470.000 219,600 (36,600) 77,000 $ 416,000 Accumulated Depreciation -Plant Assets Total Assets Liabilities Current Liabilities: Accounts Payable Salaries Payable 73,000 72,000 5,000 2,000 Long-term Liabilities: Notes Payable 59,000 134,000 66,000 Total Liabilities 143,000 Stockholders Equity Common Stock Retained Earnings Total Stockholders' Equity Total uabilities and Stockhoiders Equity 34,000 239,000 273,000 470,000 416,000 47,000 289,000 336,000