In this problem, we continue our accounting for Aqua Elite, Inc. from Chapter 10. We will assume that Aqua Elite, Inc. is now in its second year of operations.

Assume that the comparative balance sheet for Aqua Elite, Inc. at July 31, 2015, and the income statement for the month ended July 31, 2015, are as follows.

Additional information follows:
Aqua Elite, Inc. purchased a $20,000 truck financed with a note payable; it purchased a $45,000 building site financed with a mortgage payable; and it did not sell any fixed assets during the month.
Requirement
Prepare the cash flow statement using the indirect method for the month of July.

Aqua Elite, Inc Comparative Balance Sheets July 31 and June 30, 2015 July 31 June 30 ASSETS Cash Accounts Receivable, net Inventory Supplies 5,333$3,270 1,000 180 125 4,575 2,250 47 2,203 78,791 $6,778 2,280 4,175 105 11,893 67,250 352 66,898 Total Current Assets Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets LIABILITIES Accounts Payable Unearned Revenue Salary Payable Interest Payable Payroll Taxes Payable Dividend Payable Current Portion of Long-Term Debt $ 1,805 5,800 950 450 2,000 900 17 188 500 4,410 14,028 20,000 42,590 76,618 2,000 5,367 Total Current Liabilities Notes Payable Mortgage Payable Total Liabilities 5,367 SHAREHOLDERS' EQUITY Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders' Equity 1,000 411 1,411 $78,791$6,778 1,000 1,173 2,173 Aqua Elite, Inc Income Statement Month Ended July 31, 2015 Revenue $6,300 Expenses: Cost of Goods Sold Depreciation Expense Bad Debt Expense Interest Expense 1,080 220 375 150 210 2,400 268 30 Insurance Expense Supplies Expense Salary Expense Payroll Taxes Expense Bank Service Fees Net Income $1,262