Cuthbert Cookware Distributors, Inc. is a wholesale distributor of brand- name cookware products. The company’s current- year comparative balance sheets and income statement are presented below.

                Cuthbert Cookware Distributors, Inc.

                                Income Statement

                    For the Year Ended December 31

                                    Current Year

Sales Revenue………………………………………  $ 2,800,000

Cost of Goods Sold………………………………...  (1,875,000)

Selling, General, and Administrative Expenses…….  (885,000)

Depreciation Expense 0 Bad Debt Expense………..              (10,000)

Loss on Sale of Investments……………………….. (37,500)

Interest Expense – net………………………………  (5,000)

Loss before Tax…………………………………….. $ (12,500)

Tax at 40% 0 Net Loss……………………………... $ (12,500)

Additional information:

All dividends declared are paid in cash

All interest and taxes are paid in cash

Required

Prepare the statement of cash flows using the indirect reporting format. Assume accrued liabilities relate to selling, general and administrative expenses.

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Cuthbert Cookware Distributors, Inc. Balance Sheets At December 31 Assets Current Year Prior Year Current Assets S 107500 600,000 525,000 1.125,000 $1.982,500 2,250,000 Accounts Receivable net Inventory 975,000 900,000 Total Current Assets NoncurrentAssets Investments Held to Maturity Total Assets 0 300,000 $1,982 500 $2.550,000 Liabilities Current Liabilities Accrued Liabilities Accounts Payable 375,000 600,000 393 300 21/390 $ 769.300 S 817350 Total Current Liabilities Noncurrent Liabilities Notes Payable 350,000 S500,000 S 350,000 500,000 S1,118,300 $1,317,350 Total Noncurrent Liabilities Total Liabilities Shareholders' Equity Common Stock, no par value Retained Earnings Total Shareholders' Equity Less: Treasury Stock at Cost Total Liabilities and Shareholders' Equity S 625,000 625,000 512,500750,000 $ 1,137500 $1375,000 273300 142350 $1,982,500 $2,550,000