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

question 74

Essay

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

Lot-Sizing Techniques

Methods used in production and inventory management to determine the optimal order size that minimizes costs and meets demand.

Holding Costs

Expenses associated with storing unsold inventory, including warehousing, insurance, and depreciation costs.

Wagner-Whitin Algorithm

A dynamic programming technique used in inventory management to find the least cost method of meeting demand without shortages.

Wagner-Whitin Algorithm

An algorithm used in inventory management for determining the optimal times and quantities for reordering inventory to minimize costs.