CP12-3 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, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized 2014 Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment (40,200) (33,500) $ 52,030 21,500 36,000 43,000 109,000 33,300 36,300 118,700 $200,130 $176,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 29,200 25,500 1,000 55,000 67,000 27,500 730 44,000 90,500 35,700 $200,130 $176,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $107,000 64,500 29,800 Net Income $ 12,700 Additional Data a. Bought equipment for cash, $9,700 b. Paid $11,000 on the long-term note payable c. Issued new shares of stock for $23,500 cash d. Declared and paid a $4,500 cash dividend e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities $8,700 f. 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