Pro-Forma Statement of Cash Flows The accountants at Karl’s Fish Hatchery are currently preparing the pro-forma statement of cash flows for May. In getting ready to prepare the statement, they have the following information available:

Prepare Karl’s pro-forma statement of cash flows (using the indirect method).

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Dividends to be paid in May Bonds to be issued in May Equipment to be purchased in May Repayment of short-term loans in May Depreciation expense during May Expected May net income Expected changes in current assets and liabilities during May: Accounts receivable decrease Accounts payable decrease Increase in inventory Increase in income taxes payable $ 1,500 8,000 15,000 3,000 2,500 10,000 1,200 1,730 2,580 2,550