In this problem, we continue our accounting for Fitness Equipment Doctor, Inc., from Chapter 10. Fitness Equipment Doctor, Inc., is now in its second year of operations. Assume the comparative balance sheet for Fitness Equipment Doctor, Inc., at May 31, 2019, and the income statement for the month ended May 31, 2019, are:

In addition, during the month, Fitness Equipment Doctor, Inc., purchased a $29,300 truck financed with a note payable, and it purchased a $51,000 building site financed with a mortgage payable. Fitness Equipment Doctor did not sell any fixed assets during the month.

Requirement

Prepare the statement of cash flows for the month of May using the indirect method.

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Fitness Equipment Doctor, Inc. Comparative Balance Sheets May 31 and April 30, 2019 May 31 April 30 ASSETS $ 5,466 $ 5,290 51,500 20,190 Cash Accounts Receivable, net 70,390 Inventory Supplies Total Current Assets 24,250 40 105 100,146 77,085 Fixed Assets 293,800 213,500 Less: Accumulated Depreciation (11,919) 281,881 $382,027 (8,910) 204,590 $281,675 Net Fixed Assets Total Assets LIABILITIES $ 2,415 $ 6,800 1,100 1,033 Accounts Payable 400 Unearned Revenue 3,500 Salaries Payable Interest Payable Payroll Taxes Payable Dividend Payable 650 523 531 112 500 750 12,025 24,404 56,888 172,815 254,107 11,185 17,120 Current Portion of Long-Term Debt Total Current Liabilities Notes Payable Mortgage Payable Total Liabilities 26,888 123,815 167,823 STOCKHOLDERS' EQUITY Preferred Stock 5,000 7,500 5,000 7,500 Paid-in Capital in Excess of Par, Preferred Common Stock 75,000 6,000 75,000 6,000 Paid-in Capital in Excess of Par, Common Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 34,420 127,920 $382,027 20,352 113,852 $281,675 Fitness Equipment Doctor, Inc. Income Statement Month Ended May 31, 2019 $ 55,325 3,675 Net Sales Service Revenue Expenses: 30,390 6,240 3,009 2,655 Cost of Goods Sold Salaries Expense Depreciation Expense Rent Expense Interest Expense Insurance Expense 810 326 Supplies Expense Payroll Taxes Expense 193 119 Bank Service Fees 20 Net Income* $ 15,238