Fannin Company is a manufacturer of premium athletic equipment. Fannin reported the following inflows and outflows of cash during 2011.

Required:
1. Prepare a properly formatted statement of cash flows using the indirect method.
2. What can you conclude by examining the patterns in Fannin€™s cash flows?

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$12,350 114,410 103,300 25,000 e182.000 25,000 21,000 $574,250 Net income Increase in accounts receivable 34,600 Decrease in inventory Decrease in prepaid insur 45,800 Decrease in accounts payable 39,600 Decrease in income taxes payable 11,200 Increase in wages payable Cash received from sale of investment Cash paid for property, plant, and equipment 59,400 Depreciation expense Proceeds from issuance of note payable Payment on bonds payable Cash received from issuance of common stock Payment of cash dividends 28,800 Fannin had cash on hand at 1/1/11 of S218,500.