Hunter Company is developing its annual financial statements at December 31, 2011. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

Additional Data:
a. Bought fixed assets for cash, $9,000.
b. Paid $10,000 on the long-term note payable.
c. Sold unissued common stock for $20,000 cash.
d. Declared and paid a $3,800 cash dividend.
e. Incurred expenses that included depreciation, $6,000; wages, $10,000; taxes, $3,000; other, $8,000.

Required:
1. Prepare a statement of cash flows spreadsheet using the indirect method to report cash flows from operating activities.
2. Prepare the statement of cash flows.
3. Prepare a schedule of noncash investing and financing activities ifnecessary.

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2011 2010 Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Fixed assets (net) S 44,000 18,000 29,000 36,000 72,000 $155,000 27,000 30,000 75,000 $176,000 Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings 25.000 800 38,000 80,000 32.200 $176,000 22,000 1,000 48,000 60,000 24,000 $155,000 Income statement for 2011 $100,000 (61,000) (27,000) $ 12.000 Sales Cost of goods sold Expenses Net income