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

Question:

Fannin Company is a manufacturer of premium athletic equipment. Fannin reported the following inflows and outflows of cash during 2009.

Net income ...............$589,000

Increase in accounts receivable ........ 32,000

Decrease in inventory ............ 59,400

Decrease in prepaid insurance ........ 45,800

Decrease in accounts payable ......... 59,600

Decrease in income taxes payable ........ 11,200

Increase in wages payable ........... 21,600

Cash received from sale of investment ....... 9,000

Cash paid for property, plant, and equipment ... 102,000

Depreciation expense .............. 103,300

Proceeds from issuance of note payable ...... 55,000

Payment on bonds payable ........... 50,000

Cash received from issuance of common stock .. 25,000

Payment of cash dividends ........... 55,000

Fannin had cash on hand at 1/1/09 of .......$218,500.

Required:

Prepare a properly formatted statement of cash flows using the indirect method.

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