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 $ 48,160 30, 600 33,600 115, 400 (38, 400) $189,360 $ 27,400 760 41,000 86,000 34,200 $189, 360 $ 20,000 33,000 40,000 106,000 (32,000) $167,000 $ 24,000 1,000 52,000 64,000 26,000 $167,000 $104,000 63,000 28,600 $ 12,400 Additional Data: a. Bought equipment for cash, $9,400. b. Paid $11,000 on the long-term note payable. c. Issued new shares of stock for $22,000 cash, d. Declared and paid a $4,200 cash dividend. e. Other expenses included depreciation, $6,400; salaries and wages, $10,400; taxes, $3,400; utilities, $8,400. 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. 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