how do you compute cash flow using the indirect method?

		Newman Travel Products, Inc.
		Income Statement
		Year Ended December 31, 2014
	Revenues:
		Service revenue	$283,000
		Dividend revenue	8,000	$291,000
	Expenses:
		Cost of goods sold	102,000
		Salary expense	61,000
		Depreciation expense	34,000
		Advertising expense	2,900
		Interest expense	1,900

Prepare Newman's statement of cash flows for the year ended December 31,2014 using the indirect method.

Newman Travel Products, Inc.

Statement of Cash Flows (Indirect Method)

Year Ended December 31, 2014

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to

net cash provided by (used for) operating activities:

Depreciation

Decrease in accounts receivable

Decrease in inventory

Increase in prepaid expenses

Increase in accounts payable

Decrease in accrued liabilities

Net cash provided by (used for) operating activities

Cash flows from investing activities:

Proceeds from sale of land

Acquisition of plant assets

Net cash provided by (used for) investing activities

Cash flows from financing activities:

Cash receipt from issuance of common stock

Payment of note payable

Payment of dividends

Net cash provided by (used for) financing activities

Net increase (decrease) in cash

Cash balance, December 31, 2013

Cash balance, December 31, 2014

Noncash investing and financing activities:

Acquisition of plant assets by issuing a note payable