I would do a leak downtest because it could be valves. It is a more definitive. But in any case you have some engine work ahead of you.
Thanks for the response. This tractor was used and abused before I got it, certainly has no less than a couple thousand hours. Anyone ever replaced rings on that Kawasaki motor before? Trying to decide if it's a project I want to take on considering the tractor age and hours.Sounds like it wasn't maintained very good but it could have a ton of hours. It sounds like rings too me.