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:

Sorry this is a little messy, The first values are for the year 2015 and the second values are for 2014

2015 2014 Balance Sheet at December 31 Cash $ 44,990 $ 13,500 Accounts Receivable 18,900 20,000 Inventory 21,900 27,000 Equipment 101,100 93,000 Accumulated DepreciationEquipment (33,400 ) (25,500 ) $ 153,490 $ 128,000 Accounts Payable $ 19,600 $ 17,500 Salaries and Wages Payable 890 1,000 Note Payable (long-term) 27,000 39,000 Common Stock 75,500 51,000 Retained Earnings 30,500 19,500 $ 153,490 $ 128,000 Income Statement for 2015 Sales Revenue $ 119,000 Cost of Goods Sold 70,500 Other Expenses 34,600 Net Income $ 13,900 Additional Data: a. Bought equipment for cash, $8,100. b. Paid $12,000 on the long-term note payable. c. Issued new shares of stock for $24,500 cash. d. Declared and paid a $2,900 cash dividend. e. Other expenses included depreciation, $7,900; salaries and wages, $11,900; taxes, $4,900; utilities, $9,900. 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.

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.)