CP12-3 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 Canh $ 46,550 $ 15,500 Mccounts Receivable 22,500 24,000 Inventory 25,500 31,000 Equipment 105,500 97,000 Accumulated Depreciation Equipment (35,000 (27,500) Total Assets $165,050 $140,000 Accounts Payable $ 22.000 $ 19,500 Salaries and Wages Payable 850 1,000 Note Payable (long-term) 33,000 43,000 Common Stock 77,500 55,000 Retained Earnings 31,700 21,500 Total Dibilities and Stockholders' Equity $165,050 $140,000 Income Statenent (current year) Sales Revenue $115,000 Cost of Goods Sold 68.500 Other Expenses 33.000 Net Income $ 13,500 Additional Data: a Bought equipment for cash, $8,500 b. Paid $10,000 on the long-term note payable. c Issued new shares of stock for $22,500 cash. d. Declared and paid a $3,300 cash dividend. e Other expenses included depreciation, $7,500; salaries and wages, $11,500; taxes, $4,500; utilities. $9,500 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