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, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

	2015			2014
Balance Sheet at December 31
Cash	$	46,220		$	17,000
Accounts Receivable		25,200			27,000
Inventory		28,200			34,000
Equipment		108,800			100,000
Accumulated DepreciationEquipment		(36,200	)		(29,000	)
	$	172,220		$	149,000
Accounts Payable	$	23,800		$	21,000
Salaries and Wages Payable		820			1,000
Note Payable (long-term)		36,000			46,000
Common Stock		79,000			58,000
Retained Earnings		32,600			23,000
	$	172,220		$	149,000
Income Statement for 2015
Sales Revenue	$	112,000
Cost of Goods Sold		67,000
Other Expenses		31,800
Net Income	$	13,200

Additional Data:
a.	Bought equipment for cash, $8,800.
b.	Paid $10,000 on the long-term note payable.
c.	Issued new shares of stock for $21,000 cash.
d.	Declared and paid a $3,600 cash dividend.
e.	Other expenses included depreciation, $7,200; salaries and wages, $11,200; taxes, $4,200; utilities, $9,200.
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.

Required:
1.	Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)