reparing a Statement $of$ Cash Flows $(Indirect$ Method$)$

The following financial statements were issued $by$ Hoskins Corporation for the fiscal year ended December $31,$ Year $8.$ All amounts are $in$ millions $ofU.S.$ dollars.

Balance Sheets

December $31,$ Year $7$ December $31,$ Year $8$

Assets

Cash $$900$ $$1,650$

Accounts Receivable $1,8004,500$

Inventory $1,2001,500$

Prepaid Expenses $1,200450$

Current Assets $5,1008,100$

Property, Plant and Equipment $at$ Cost $18,60018,300$

Less Accumulated Depreciation $(6,300)(5,250)$

Property, Plant and Equipment, Net $12,30013,050$

Total Assets $$17,400$ $$21,150$

Liabilities and Shareholders$$ Equity

Accounts Payable $$1,200$ $$2,400$

Income Tax Payable $600300$

Short$-$Term Debt $3,6008,100$

Current Liabilities $5,40010,800$

Long$-$Term Debt $3,0000$

Total Liabilities $8,40010,800$

Contributed Capital $2,4002,400$

Retained Earnings $6,6007,950$

Total Shareholders$$ Equity $9,00010,350$

Total Liabilities and Shareholders$$ Equity $$17,400$ $$21,150$

Income Statement

Year $8$

Sales Revenues $$19,500$

Cost $of$ Goods Sold $10,200$

Gross Profit $9,300$

Selling, General and Administrative Expenses $4,350$

Depreciation Expense $1,050$

Operating Income $3,900$

Interest Expense $1,050$

Income Before Income Tax Expense $2,850$

Income Tax Expense $750$

Net Income $$2,100$

Additional information:

$1.$ During fiscal Year $8,$ Hoskins Corporation acquired new equipment for $$3,600in$ cash. $In$ addition, the company disposed $of$ used equipment that had original cost $of$ $$3,900$ and accumulated depreciation $of$ $$2,100,$ receiving $$1,800in$ cash from the buyer.

$2.$ During fiscal Year $8,$ Hoskins Corporation arranged short$-$term bank financing and borrowed $$4,500,$ using a portion $of$ the cash $to$ repay all $of$ its outstanding long$-$term debt.

$3.$ During Year $8,$ Hoskins Corporation engaged $inno$ transactions involving its common stock, though $it$ did declare and pay $in$ cash a common stock dividend $of$ $$750.$

Prepare a statement $of$ cash flows $(all$ three sections$)$ for Hoskins Corporation$s$ fiscal Year $8,$ using the indirect method for the cash from operations section.

Note: Use a negative sign with your answer $to$ indicate a reduction $in$ cas$\frac{h}{c}$ash outflow.