CP12-3 (Algo) Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12- 5) Hunter Company is developing its annual financial statements at December 31 The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized. Balance Sheet at December 31 Current Year Prior Year Cash $ 52,320 $ 22,000 Accounts Receivable 34,200 37.900 Inventory 37,200 44,000 Equipment 119,00 110,000 Accumulated Depreciation Equipment 140, 800) (34,000) Total Assets $ 282,720 $ 179.000 Accounts Payable 5 29,800 326,000 Salaries and Wages Payable 720 1.000 Notes Payable long-teral 44.000 Common Stock 56.ece 92.000 65.000 Retained Earnings 36,200 28,000 Total Liabilities and Stockholders' Equity $ 202,720 $ 179,000 Income Statement (current year) Sales Revenue $ 108.000 Cost of Goods Sold 65,000 Other Expenses 30.2ee Net Income $ 12,800 Additional Data a Bought equipment for cash, $9.800. b Paid $12,000 on the long-term notes payable cIssued new shares of stock for $24,000 cash. d Declared and paid a $4.600 cash dividend. e Other expenses included depreciation. $6.800 salaries and wages. $10.800; taxes, $3,800 utilities. $8.800 Accounts Payable includes only inventory purchases made on credit Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash, Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activiti Adjustments to Record Nel come to Net Cash Provided by Operating Activities Changes in Current Assets and Current Lab Cash Pows from mig Active Cash Flows from Francing A