Statement of Cash Flows—Indirect Method The following balances are available for Chrisman Company:

Bonds were retired during 2008 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $35,000. Net income was reported at $26,000.
Required 1. Prepare a statement of cash flows for 2008 using the indirect method in the Operating Activities section.
2. Did Chrisman generate sufficient cash from operations to pay for its investing activities? How did it generate cash other than from operations? Explain your answers.

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December 31 2008 2007 Cash $ 8,000 $ 10,000 Accounts receivable 20,000 15,000 Inventory 15,000 25,000 Prepaid rent 9,000 6,000 Land 75,000 75,000 Plant and equipment 400,000 300,000 Accumulated depreciation (65,000) (30,000) Totals $462,000 $401,000 Accounts payable $ 12,000 $ 10,000 Income taxes payable 3,000 5,000 Short-term notes payable Bonds payable 35,000 25,000 75,000 100,000 Common stock 200,000 150,000 Retained earnings Totals 137,000 111,000 $462,000 $401,000