Comparative balance sheets for Cincinnati Health Club are presented below.

Cincinnati Health Club

Balance Sheets

December 31, 2019 and 2018

Additional Information:

1. Cincinnati Health Club reported net income of $2,700 for 2019.

2. No buildings or equipment were sold during 2019. Equipment was purchased for $10,000 cash.

3. Depreciation expense for 2019 was $28,000.

4. Bonds payable of $50,000 were issued for cash during 2019.

5. Common stock of $30,000 was issued during 2019.

6. Cash dividends of $10,000 were declared and paid during 2019.

Required:

Using a spreadsheet, prepare a statement of cash flows for 2019. Assume Cincinnati Health Club uses the indirect method?

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2019 2018 ASSETS Current assets: $ 5,300 10,500 19,800 $ 35,600 $ 9,200 8,900 18,600 $ 36,700 Cash Accounts receivable Inventory Total current assets Property, plant, and equipment: Building Equipment $ 490,000 280,000 $ 770,000 (148,000) $ 490,000 270,000 $ 760,000 (120,000) Accumulated depreciation Net property, plant, and equipment Total assets 622,000 640,000 $676,700 $657,600 LIABILITIES AND EQUITY Current liabilities: $ 55,300 9,500 1,100 $ 36,100 11,700 9,900 Accounts payable Salaries payable Income taxes payable $ 65,900 $ 57,700 Total current liabilities Long-term liabilities: Bonds payable Total liabilities 350,000 $415,900 400,000 $457,700 Equity: Common stock Retained eamings Total equity Total liabilities and equity $180,000 61,700 $150,000 69,000 241,700 $657,600 219,000 $676,700