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: Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. 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. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: \begin{tabular}{|l|l|l|} \hline Depreciation Expense & & \\ \hline Changes in Current Assets and Current Liabilities & & \\ \hline Decrease in Accounts Receivable & & \\ \hline Decrease in Inventory & & \\ \hline Increase in Accounts Payable & & \\ \hline Decrease in Salaries and Wages Payable & & \\ \hline & & \\ \hline Net Cash Provided by Operating Activities & & \\ \hline Cash Flows from Investing Activities: & & \\ \hline Cash Payments to Purchase Equipment & & \\ \hline & & \\ \hline & & \\ \hline Cash Flows from Financing Activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}