Hanks Company is developing its annual financial statements at December 31, 2016. 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, $12,000.

b. Paid $6.000 on the long-term note payable.

e. Sold unissued common stock for $18,500 cash.

d. Declared and paid a $2,000 cash dividend.

e. Incurred the following expenses: depreciation. $4,000; wages, $12,000; taxes, $2,000; and other, $12,000.

Required

1. Prepare statement of cash flows T-accounts 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 if necessary.

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2016 2015 Balance sheet at December 31 $ 33,000 26,000 39,000 80,000 $ 18,000 28,000 36,000 Cash Accounts receivable Merchandise inventory Fixed assets (net) 72,000 $178,000 $154,000 $ 27,000 1,500 42,000 78,500 S29,000 $ 21,000 1,000 48,000 60,000 Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings 24,000 $178,000 $154,000 Income statement for 2016 $ 80,000 (43,000) (30,000) Sales Cost of goods sold Expenses $ 7,000 Net income