During a recent year, Nicole’s Getaway Spa (NGS) reported net income of $ 2,300. The company reported the following activities:
a. Increase in inventory of $ 400.
b. Depreciation of $ 3,000.
c. Increase of $ 2,170 in prepaid expenses.
d. Payments of $ 4,600 on long- term debt.
e. Purchased new spa equipment for $ 7,582.
f. Payments on accounts payable exceeded purchases by $ 320.
g. Collections on accounts receivable exceeded credit sales by $ 859.
h. Issued $ 10,000 of common stock.
Required:
Based on this information, prepare a statement of cash flows for the year ended December 31 using the indirect method. Assume the cash balance at the beginning of the year was $ 7,000.