(SCF—Indirect Method) The comparative balance sheets for Shenandoah Corporation show the — following information.

Instructions Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country.

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December 31 2008 2007 Cash $ 38,500 $13,000 Accounts receivable 12,250 10,000 Inventory Investments Building 12,000 9,000 -0- 3,000 -0- 29,750 Equipment Patent 40,000 20,000 5,000 6,250 $107,750 $91,000 Allowance for doubtful accounts 3,000 4,500 Accumulated depreciation on equipment 2,000 4,500 Accumulated depreciation on building -0- 6,000 Accounts payable 5,000 3,000 Dividends payable -0- 5,000 Notes payable, short-term (nontrade) 3,000 4,000 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,750 6,000 $107,750 $91,000