PREPARINGA STATEMENT OF CASH FLOWS. Balance sheets for Cincinnati Health Club, Inc., appear below:

Due to adverse economic conditions, Cincinnati Health Club had a net loss in 19x8 of $7,300. Cincinnati Health Club paid no dividends during 19x8. To help the firm through the temporary downturn, owners provided the corporation $30,000 cash by purchasing common stock.
REQUIRED:
Prepare a statement of cash flows for Cincinnati Health Club for 19x8, using the indirect method to determine cash flows from operations.

Transcribed Image Text:

ASSETS CINCINNATI HEALTH CLUB, INC. Balance Sheets As of December 31, 19x9 and 19x8 19x9 19x8 Current assets: Cash $ 5,300 $ 9,200 Accounts receivable, dues 10,500 8,900 Supplies inventory 19,800 18,600 Total current assets 35,600 36,700 Property, plant, and equipment: Land $ 40,000 $ 40,000 Building 450,000 450,000 Equipment 280,000 270,000 770,000 760,000 Accumulated depreciation Net property, plant, and equipment Total assets LIABILITIES Current liabilities: Accounts payable Wages payable Income taxes payable Total current liabilities Long-term debt: Mortgage payablet EQUITY Total liabilities (148,000) (120,000) 622,000 $657,600 $ 55,300 640,000 $676,700 $ 36,100 9,500 11,700 1,100 9,900 65,900 57,700 350,000 400,000 415,900 457,700 Common stock Retained earnings $180,000 61,700 $150,000 69,000 Total equity 241,700 219,000 Total liabilities and equity $657,600 8676,700