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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

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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. 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 Cash Balance Sheet at December 31 Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 55,610 35,100 38,100 120,900 (41,100) $208,310 $ 30,400 710 47.000 93,500 36,700 $208,910 $ 22,500 38,000 45,000 111,000 (34,500) $182,000 $ 26,500 1,000 57,000 9,000 28,500 $182,000 $109,000 65,500 30.600 $ 12,900 Additional Data: a. Bought equipment for cash. $9,900. b. Pald $10,000 on the long term note payable. c. Issued new shares of stock for $24.500 cash. d. Declared and paid a $4,700 cash dividend. Additional Data: a. Bought equipment for cash. $9,900. b. Paid $10,000 on the long-term note payable, Issued new shares of stock for $24,500 cash d. Declared and paid a $4.700 cash dividend e Other expenses included depreciation, S6,900, satories and wages, $10.900, taxes, $3.900 voltes $8,900. Accounts Payable includes only inventory purchases made on credit. Because there are no lability accounts relating to taxes on 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 Activities Adjustments to Reconcilo Not Income to Net Cash Provided by Operating Activitios NOVI VIVO For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities

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