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: Current Year Prior Year Balance sheet at December 31 Cash $ 45,330 $ 16,500 Accounts Receivable 24,300 26,000 Inventory 27.300 33,000 Equipment 107,700 99,000 Accumulated Depreciation-Equipment (35,800) (28,500) Total Assets $ 168,830 $ 146,000 Accounts Payable $ 23,200 $ 20,500 Salaries and Wages Payable 830 1,000 Notes Payable (long-term) 34,000 45,000 Common Stock 78,500 57,000 Retained Earnings 32.300 22,500 Total Liabilities and Stockholders' Equity $ 168,830 $ 146,000 Income Statement (current year) Sales Revenue $ 113,000 Cost of Goods Sold 67,500 Other Expenses 32.200 Net Income $ 13,300 Additional Data: a. Bought equipment for cash $8,700, b. Paid $11,000 on the long-term notes payable. c Issued new shares of stock for $21.500 cash d. Declared and paid a $3,500 cash dividend. e Other expenses included depreciation, $7,300; salaries and wages, $11,300; taxes, $4,300; utilities, $9,300, 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.) Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities 0 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0