Refer to the information reported about Satu Company in Problem 16- 4B.
In Problem 16- 4B, Satu Company, a merchandiser, recently completed its 2013 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company€™s balance sheets and income statement follow.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was $ 202,767.
b. Accounts receivable decreased.
c. Merchandise inventory increased.
d. Accounts payable decreased.
e. Income taxes payable decreased.
f. Depreciation expense was $ 15,700.
g. Purchased equipment for $ 30,250 cash.
h. Issued 3,000 shares at $ 21 cash per share.
i. Declared and paid $ 60,000 of cashdividends.

SATU COMPANY Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets 58.750 .20,222 Accounts 25,860 Merchandise inventory165,667 40,320 77,500 receivable . SATU COMPANY Income Statement For Year Ended December 31,203 Accum. depreciation-Equipment.(46.700) 31000) Liabilities and Equity Income taxes payable ....2.100 $750,800 Total assets 269.200 $305,689 $241,080 Sales.. Cost of goods sold Gross profit Operating expenses Accounts payable.r... 20.372 157,530 6,100 40.000 25.000 Depreciation expense .15.700 Common stock, $5 par value....4 173.933 89,633 Paid-in capital in excests Other expenses..1 Income before taxes. Income taxes expense. Net income.. 68000 20,o0 $202767 Total liablities and equi305,68 $241.080 297 of par, common stock 89,200 Retained earnings .. __ ..1 20,000 175,217 32.450