PREPARING A STATEMENT OF CASH FLOWS Monon Cable Television Company reported the following financial statements for 2009:

Monon Cable Television Company Income Statement For the Year Ended December 31, 2009 Sales $519,000 Less operating expenses:

Royalty expense $240,000 Salaries expense 26,000 Utilities expense 83,000 Supplies expense 13,000 Rent expense 79,000 Depreciation expense 28,000 469,000 Income from operations $ 50,000 Other income (expenses):

Gain on sale of antenna $ 800 Interest expense (1,800) (1,000)

Income before taxes $ 49,000 Less: Income taxes expense 9,000 Net income $ 40,000 Monon Cable Television Company Balance Sheets December 31, 2009 and 2008 ASSETS 2009 2008 Current assets:

Cash $ 2,000 $ 3,000 Accounts receivable 11,300 11,000 Supplies inventory 1,200 1,700 Total current assets $ 14,500 $ 15,700 Property, plant, and equipment:

Antenna $ 60,000 $ 35,000 Equipment 210,000 190,000 Cable system 81,000 75,000

$ 351,000 $ 300,000 Accumulated depreciation (125,000) (131,000)

Net property, plant, and equipment 226,000 169,000 Total assets $240,500 $184,700 LIABILITIES AND EQUITY Current liabilities:

Accounts payable $ 6,500 $ 8,000 Rent payable 4,900 13,600 Royalties payable 3,300 3,100 Total current liabilities $ 14,700 $ 24,700 Long-term liabilities:

Long-term notes payable 40,000 0 Total liabilities $ 54,700 $ 24,700 Equity:

Common stock $ 100,000 $ 100,000 Retained earnings 85,800 60,000 Total equity 185,800 160,000 Total liabilities and equity $240,500 $184,700 Additional information:

a. The old antenna with a cost of $35,000 and accumulated depreciation of $34,000 was taken down and sold as scrap for $1,800 cash during 2009. A new antenna was purchased for cash at an installed cost of $60,000.

b. Additional equipment was purchased for $20,000 cash.

c. Wiring for 300 additional homes was purchased for $6,000 cash.

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

e. A long-term note payable was issued for $40,000 cash.

f. Dividends of $14,200 were paid during 2009.

Required:

Prepare a statement of cash flows, using the indirect method to compute net cash flow from operating activities.