Monon Cable Television Company reported the following financial statements for 2011:

Required:
1. Prepare a statement of cash flows, using the indirect method to compute net cash flow from operating activities.
2. Explain what has been responsible for the decrease in cash.

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Monon Cable Television Company nce December 31, 2011 and 2010 Monon Cable Television Company Income Statement 0 For the Year Ended December 31, 2011 $519,000 Less operating expense$(240,000 $2,000 11,300 $ 8,000 6,000 3 Accounts receivable Total current assels 14,500 179,000 Property, plant, and equipment: 69,000) 35,000 190,000 75,000 $ 300,000 Equipment [antenna) Buildings 210,000 81,000 351,000 Accumulated depreciation125,000) and equipment 800 Net property, plant, and equipment Total assets 226,000 $240,500 169,000 5184 700 Income berore taxes ,001,000 5 49,000 Interest expense ess Income toxes expense $ 40,000 LABILITES AND EQUITY Current liabilities: Additional information: $6,500 4,900 3,300 $ 8,000 Equipment (an old antennal with a cost of $35,000 and accumulated depreciation of $34,000 was taken down and sold as scrap for $1,800 cash dur- ing 2011. A new antenna was purchased for cash at an installed cost of $60,000 A building wos purchased for $20,000 cash. Trucks were purchased for $6,000 cash. Depreciation expense for 2011 was $28,000 AlongHerm note payable was issued for $40,000 cash. Dividends of $14,200 were paid during 2011 1. Rent payable Royalties payable Tolal current liabilities 14,700 Long-term liabilities: Notes payable (long-ter) 40,000 54,700 2. 3. 4. 5. 6. Total liabilities Common stock Retained eanings $100,000 85,800 Tolal equity 185,800 240,500 Total liabilities and equiy 184,700