Prepare the statement ot cash flows for the current year ended December $31,$ using the indirect method to report cash flows from operating activities.

 

Indirect Method- Preparing a Statement of Cash Flows Calex Inc. reported the following December 31 comparative balance sheets. Balance Sheets Prior Year Current Year Cash and cash equivalents $2,000 $5,375 Accounts receivable 1,500 1,000 Equipment 5,000 7,500 Accumulated depreciation (500) (1,000) Total assets $8,000 $12.875 Salaries payable $500 $1,000 Long-term notes payable 2,500 2,500 Capital stock 4,000 4,000 Retained earnings 1,000 5,375 Total liabilities and stockholders' equity $8,000 $12,875 Ch 5 Cash Flows Indirect Additional information: 1. Net income for the current year was $4,875. 2. No disposals of equipment took place during the year. Prepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities. Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.