Comparative balance sheets for Byron Manufacturing as of December 31, 20Y8 and 20Y7 are shown. Complete the Changes column to determine net cash flows during the year.

Byron Manufacturing Balance Sheets As of December 31, 20Y8 and 20Y7
Assets	20Y8	20Y7
Current assets:
Cash	5,240	9,050
Accounts receivable	10,390	8,950
Inventory	19,840	18,520
Total current assets	35,470	36,520
Property, plant, and equipment
Building	492,000	492,000
Equipment	277,000	270,400
	769,000	762,400
Accumulated depreciation	(147,950)	(121,000)
Net property, plant, and equipment	621,050	641,400
Total assets	656,520	677,920
Liabilities and Equity
Current liabilities:
Accounts payable	55,170	36,110
Salaries payable	9,430	11,650
Income taxes payable	1,140	9,940
Total current liabilities	65,740	57,700
Long-term liabilities:
Bonds payable	350,000	399,000
Equity:
Common stock	182,000	148,000
Retained earnings	58,780	73,220
Total equity	240,780	221,220
Total liabilities and equity	656,520	677,920

Additional information needed to prepare the statement of cash flows using the indirect method:

1. Net income was $2,500
2. Byron paid $16,940 in cash dividends
3. Byron issued $50,940 in bonds payable for cash
4. Byron retired $99,940 in bonds with cash
5. No fixed assets were sold or disposed of during the period

Now prepare the statement of cash flows for Byron Manufacturing using the indirect method. Select Increase or Decrease and enter the amounts.

Byron Manufacturing Spreadsheet to Prepare the Statement of Cash Flows For the Year Ended December 31, 20Y8
	Beginning		Increase/Decrease			Ending
Balance Sheet Accounts	Balance		Debit	Credit		Balance
Cash					(m)	-
Accounts receivable	8,950	(h)	1,440			10,390
Inventory	18,520	(i)				19,840
Building	492,000					492,000
Equipment	270,400	(b)				277,000
Accumulated depreciation	121,000				(c)	147,950
Accounts payable	36,110			19,060	(j)	55,170
Salaries payable	11,650	(k)				9,430
Income taxes payable	9,940	(l)	8,800			1,140
Bonds payable	399,000	(e)			(d)	350,000
Common stock	148,000			34,000	(f)	182,000
Retained earnings	73,220	(g)			(a)	58,780
			Increase/Decrease in Cash
Statement of Cash Flows			Debit	Credit
Cash flow from operating activities
Net income		(a)
Adjustments to reconcile net income to net cash flow from operating activities
Depreciation expense		(c)
Increase in accounts receivable				1,440	(h)
Increase in inventory					(i)
Increase in accounts payable		(j)	19,060
Decrease in salaries payable					(k)
Decrease in income taxes payable				8,800	(l)
Cash flows from investing activities
Purchase equipment					(b)
Cash flows from financing activities
Issued bonds payable		(d)
Retired bonds payable					(e)
Issued common stock		(f)
Paid dividend					(g)
Net increase (decrease) in cash		(m)
			274,520	274,520

Now you can prepare the Statement of Cash Flows using the indirect method. Fill in the Statement based on the spreadsheet. Select Increase or Decrease and enter the amounts.

Byron Manufacturing Statement of Cash Flows For the Year Ended December 31, 20Y8
Cash flows from operating activities:
Net income		$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense	$
IncreaseDecreaseIncrease in accounts receivable	(1,440)
IncreaseDecreaseIncrease in inventory	$
IncreaseDecreaseIncrease in accounts payable	19,060
IncreaseDecreaseDecrease in salaries payable	$
IncreaseDecreaseDecrease in income taxes payable	(8,800)	32,230
Net cash provided by operating activities		$ 34,730
Cash flows from investing activities:
Purchase of equipment	$ (6,600)
Net cash used for investing activities		(6,600)
Cash flows from financing activities:
Proceeds from issuance of bonds payable	$
Retired bonds payable	(99,940)
Issued common stock	$
Payment of dividends	(16,940)
Net cash used for financing activities		(31,940)
Net increase (decrease) in cash		$
Cash, 1/1/20Y8		$
Cash, 12/31/20Y8		$