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For the Year Ended December 31,2015,the Following Information Is Available

Question 130

Essay

For the year ended December 31,2015,the following information is available for the Kansas Company:
 Sales $891,000 Cost of goods sold 662,000 Depreciation expense 16,000 Amortization expense 3,000 Wage expense 91,000 Rent expense 4,000 Loss on sale of fixed assets 2,000 Interest expense 13,000 Income taxexpense 38,000 Total expenses 829,000 Net income $62,000\begin{array}{ll}\text { Sales }&&\$891,000\\\text { Cost of goods sold } & 662,000 \\\text { Depreciation expense } & 16,000 \\\text { Amortization expense } & 3,000 \\\text { Wage expense } & 91,000 \\\text { Rent expense } & 4,000 \\\text { Loss on sale of fixed assets } & 2,000 \\\text { Interest expense } & 13,000 \\\text { Income taxexpense } & \underline{38,000}\\\text { Total expenses }&&829,000\\\text { Net income }&&\$62,000\\\end{array}
 December 31,2014  December 31,2015 Cash $10,000$12,800 Accounts receivable $10,000$19,200 Inventory $20,000$14,100 Prepaid rent $2,000$1,700 Accounts payable $22,000$24,400 Wages payable $12,000$11,300 Taxes payable $2,000$3,100\begin{array}{lll}&\text { December 31,2014 }&\text { December 31,2015}\\\text { Cash } & \$ 10,000 & \$ 12,800 \\\text { Accounts receivable } & \$ 10,000 & \$ 19,200 \\\text { Inventory } & \$ 20,000 & \$ 14,100 \\\text { Prepaid rent } & \$ 2,000 & \$ 1,700 \\\text { Accounts payable } & \$ 22,000 & \$ 24,400 \\\text { Wages payable } & \$ 12,000 & \$ 11,300 \\\text { Taxes payable } & \$ 2,000 & \$ 3,100\end{array}
Required:
Prepare the operating activities section of the statement of cash flows for the year ending December 31,2015.Use the indirect method.

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