In this problem, we continue our accounting for Pure Water, Inc., from Chapter 10. We will assume that Pure Water, Inc., is now in its second year of operations. Assume that the comparative balance sheet for Pure Water, Inc., at July 31, 2013, and the income statement for the month ended July 31, 2013 are as follows:

Additional information follows:
Pure Water, Inc.
Income Statement
Month Ended July 31, 2013
Revenue....................$12,000
Expenses:
Cost of Goods Sold ................1,920
Depreciation Expense ............... 540
Rent Expense ................... 456
Interest Expense ................. 588
Insurance Expense ................ 288
Supplies Expense .................. 276
Salaries Expense.................4,440
Payroll Taxes Expense................ 468
Bank Service Fees................. 72
Net Income*..................$2,952
Pure Water, Inc., purchased a $12,700 truck financed with a note payable; it purchased a $43,000 building site financed with a mortgage payable; and it did not sell any fixed assets during the month.

Requirement
1. Prepare the statement of cash flows using the indirect method for the month ofJuly.

Pure Water, Inc. Comparative Balance Sheets July 31 and June 30, 2013 July 31 June 30 ASSETS Cash Accounts Receivable, net inventory Supplies S 3,05853,910 6,520 1,000 160 150 5,220 3.500 3,500 Total Current Assets Fixed Assets Less: Accumulated Depreciation 13.133 59,200 (617) 58,583 Net Fixed Assets Total Assets 3,423 S71,716S8,643 LIABILITIES Accounts Payable Unearned Revenue Salaries Payable Interest Payable Payroll Taxes Payable Dividend Payable Current Portion of Long-Term Debt s 1550 S 550 4,000 825 25 6.600 925 588 158 1,200 2,225 500 13246 5900 Total Current Liabilities Notes Payable Mortgage Payable Total Liabilities 12,700 41.275 67,221 5.900 STOCKHOLDERS EQUITY 900 Common Stock Ratained Earmings Total Stockhoiders Equity Total Liabilities & Stockholders' Equity 900 4,495 2743