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	Answer
Adjustments:
Depreciation expense	Answer
Decrease in accounts receivable	Answer
Increase in salaries payable	Answer
Net cash provided by operating activities	Answer
Cash flows from investing activities
Cash paid for acquisition of equipment	Answer
Net cash used by investing activities	Answer
Cash flows from financing activities
Cash paid for dividends	Answer
Net cash used by financing activities	Answer
Net increase in cash and cash equivalents during 2020	Answer
Cash and cash equivalents, January 1, 2020	Answer
Cash and cash equivalents, December 31, 2020	Answer