CP12-3 (Algo) Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12- 5) Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Noten Payable (long-term) Connon Stock Retained Earnings Total Liabilities and stockholders' Equity Income Statement (current year) Sales Revenue cont of Goods 410 other expenses Net Income $ 55,900 36,000 39,000 122,000 42,000) $ 210,900 $ 31,000 700 47.000 95,000 37,200 $ 210,900 $ 23,000 39,000 46,000 112,000 (35.000) $ 185,000 $ 27,000 1,000 00 70,000 29,000 $ 105,000 $ 110,000 66,000 31,000 $ 13,000 Additional Data: o. Bought equipment for cash, $10,000. b. Paid $11,000 on the long term notes payable. c.Issued new shares of stock for $25,000 cash d. Declared and paid a $4.800 cash dividend e. Other expenses included depreciation, $7,000; salaries and wages, $11,000, taxes. $4,000 utilities, $9,000, f Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash, HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities 0 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0