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 Balance Sheet at December 31 Cash 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 $ 46,550 22,500 25,500 105,500 (35,000) $165,050 $ 22,000 850 33,000 77,500 31,700 $165,050 $ 15,500 24,000 31,000 97,000 (27,500) $140,000 $ 19,500 1,000 43,000 55,000 21,500 $140,000 $115,000 68,500 33,000 $ 13,500 Additional Data: a. Bought equipment for cash, $8,500. b. Paid $10,000 on the long-term note payable. c. Issued new shares of stock for $22,500 cash. d. Declared and paid a $3,300 cash dividend. e. Other expenses included depreciation, $7,500; salaries and wages, $11,500; taxes, $4,500; utilities, $9,500. 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. HUNTER COMPANY 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: Cash Flows from Investing Activities: Cash Flows from Financing Activities