Forrest Company is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

Additional Data:
a. Bought fixed assets for cash, $10,000.
b. Paid $10,000 on the long-term note payable.
c. Sold unissued common stock for $20,000 cash.
d. Declared and paid a $3,800 cash dividend.
e. Incurred expenses that included depreciation, $6,000; wages, $10,000; taxes, $3,000; and other, $8,000.
Required:
1. Prepare a statement of cash flows spreadsheet using the indirect method to report cash flows from operating activities.
2. Prepare the statement of cash flows.
3. Prepare a schedule of noncash investing and financing activities ifnecessary.

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2013 2012 Balance sheet at December 31 $ 44,000 26,000 $ 18,000 Cash Accounts receivable 29.000 Merchandise inventory Fixed assets (net) 30,000 36,000 76,000 72.000 $155,000 $176,000 $ 25,000 S 22,000 Accounts payable Wages payable Note payable, long-term Common stock, no par Retained eamings 800 1,000 38,000 48,000 80,000 60,000 32,200 24,000 $155,000 $176,000 Income statement for 2013 Sales $100,000 Cost of goods sold Expenses (61,000) (27,000) $ 12,000 Net income