Create a Statement of Cash Flows using the Indirect Method.

Identify anything that includes the following:

Net Income, operating activities, investing activities, financing activities, non-cash transaction.

Information provided by Watson Company:

Depreciation expense: $8,000

Issued common stock of $5,100

Net Income: $35,000

Account Receivable increased $4,000

Investments increased $1,800

Sold equipment for $2,000, which originally cost the company $5,600 and accumulated depreciation of $1,200.

Paid dividends of $2,500

Purchased equipment by issuing $20,000 of bonds