Given the fast growth of HHEC.com during the year, Sophia and Francesca are concerned about the sources and uses of the companys cash. You explain to them that preparing a Statement of Cash Flows will provide answers to some of their questions. In response, they give you HHEC.coms Year 3 income statement and balance sheet along with some additional information and ask you to prepare HHEC.coms Statement of Cash Flows for Year 3.

HHEC HAPPY HOME Environmental Cleaning Task 8: Given the fast growth of HHEC.com during the year, Sophia and Francesca are concerned about the sources and uses of the company's cash. You explain to them that preparing a Statement of Cash Flows will provide answers to some of their questions. In response, they give you HHEC.com's Year 3 income statement and balance sheet along with some additional information and ask you to prepare HHEC.com's Statement of Cash Flows for Year 3. Cash Accounts Receivable Inventory Equipment Accumulated depreciation Accounts Payable Sales Tax Payable Notes Payable Retained Earnings Common Stock Treasury Stock Net Income Dividends Payable Year 2 25,000 50,000 45,000 83,000 54,000 39,000 20,000 3,000 79,000 6,000 3,000 17,500 5,000 Year 3 29,500 63,800 38,000 82,000 58,300 16,400 27,000 5,400 92,200 11,000 2,000 18,200 0 Note: In Year 3, equipment with a book value of $800 was sold for $900