In getting ready to prepare the pro-forma statement of cash flows for May, the accountants at Karl’s Fish Hatchery have the following information available:

Cash balance, April 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,500

Dividends to be paid in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

Bonds to be issued in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Equipment to be purchased in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15,000

Repayment of short-term loans in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000

Depreciation expense during May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,500

Expected May net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Expected changes in current assets and liabilities during May:

Accounts receivable decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Accounts payable decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,730

Increase in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,580

Increase in income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,550

Prepare Karl’s pro-forma statement of cash flows for May (using the indirect method).