(SCF—Indirect Method) The following is Blue Man Corp.’s comparative balance sheet accounts at December 31, 2008 and 2007, with a column showing the increase (decrease) from 2007 to 2008.

Instructions Prepare a statement of cash flows for Blue Man Corp. for the year ended December 31, 2008, using the indirect method.

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Cash Accounts receivable Inventories Property, plant and equipment Accumulated depreciation Investment in Blige Co. Loan receivable Total assets Accounts payable COMPARATIVE BALANCE SHEETS 2008 2007 Increase (Decrease) $ 807,500 $ 700,000 $107,500 1,128,000 1,168,000 (40,000) 1,850,000 1,715,000 135,000 3,307,000 2,967,000 340,000 (1,165,000) (1,040,000) (125,000) 305,000 275,000 262,500 $6,495,000 $5,785,000 30,000 262,500 $710,000 $1,015,000 $ 955,000 $ 60,000 Income taxes payable 30,000 50,000 (20,000) Dividends payable 80,000 100,000 (20,000) Capital lease obligation 400,000 400,000 Capital stock, common, $1 par 500,000 500,000 Additional paid-in capital 1,500,000 1,500,000 Retained earnings 2,970,000 2,680,000 290,000 Total liabilities and stockholders' equity $6,495,000 $5,785,000 $710,000