Indirect Method - Preparing a Statement of Cash Flows Calex Inc. reported the following comparative balance sheets. Balance Sheets Dec 31, 2019 Dec 31, 2020 Cash and cash equivalents $4,000 $10,750 Accounts receivable 3,000 2.000 Equipment 10,000 15,000 Accumulated depreciation (1,000) (2.000) Total assets $16,000 $25,750 Salaries payable $1,000 $2,000 Long-term notes payable 5,000 5,000 Capital stock 8,000 8,000 Retained earnings 2,000 10,750 Total liabilities and stockholders' equity $16.000 $25,750 Additional information 1. Net income for the current year was $9,750. 2. No disposals of equipment took place during the year. Prepare the statement of cash flows for Calex for the year ended December 31, 2020, using the indirect method to report cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net Income $ 9.750 Adjustments: Depreciation expense 1.000 Decrease in accounts receivable 1,000 Increase in salaries payable 1.000 Net cash provided by operating activities 12.750 Cash flows from investing activities Cash paid for acquisition of equipment (5,000) Net cash used by investing activities (5,000) Cash flows from financing activities Cash paid for dividends (1.000) Net cash used by financing activities (1,000) Net increase in cash and cash equivalents during 2020 67,500 X Cash and cash equivalents, January 1, 2020 4,000 Cash and cash equivalents, December 31, 2020 $ 10.750