(APPENDIX 11B) USING A SPREADSHEET TO PREPARE A STATEMENT OF CASH FLOWS Comparative balance sheets for Cincinnati Health Club are presented below.

Cincinnati Health Club Balance Sheets December 31, 2009 and 2008 ASSETS 2009 2008 Current assets:
Cash $ 5,300 $ 9,200 Accounts receivable 10,500 8,900 Inventory 19,800 18,600 Total current assets $ 35,600 $ 36,700 Property, plant, and equipment:
Building $ 490,000 $ 490,000 Equipment 280,000 270,000 $ 770,000 $ 760,000 Accumulated depreciation (148,000) (120,000)
Net property, plant, and equipment 622,000 640,000 Total assets $657,600 $676,700 LIABILITIES AND EQUITY Current liabilities:
Accounts payable $ 55,300 $ 36,100 Salaries payable 9,500 11,700 Income taxes payable 1,100 9,900 Total current liabilities $ 65,900 $ 57,700 Long-term liabilities:
Bonds payable 350,000 400,000 Total liabilities $415,900 $457,700 Equity:
Common stock $ 180,000 $ 150,000 Retained earnings 61,700 69,000 Total equity 241,700 219,000 Total liabilities and equity $657,600 $676,700 Additional information:

a. Cincinnati Health Club reported net income of $2,700 for 2009.

b. No buildings nor equipment were sold during 2009. Equipment was purchased for $10,000 cash.

c. Depreciation expense for 2009 was $28,000.

d. Bonds payable of $50,000 were issued for cash during 2009.

e. Common stock of $30,000 was issued during 2009.

f. Cash dividends of $10,000 were declared and paid during 2009.
Required:
Using a spreadsheet, prepare a statement of cash flows for 2009. Assume Cincinnati Health Club uses the indirect method.
Problem Set A