Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Current Year Prior Year Balance sheet at December 31 Cash $ 33,000 $ 18,000 Accounts receivable 26,000 28,000 Merchandise inventory 39,000 36,000 Fixed assets (net) 80,000 72,000 $ 178,000 $ 154,000 Accounts payable $ 27,000 $ 21,000 Wages payable 1,500 1,000 Note payable, long-term 42,000 48,000 Common stock, no par 78,500 60,000 Retained earnings 29,000 24,000 $ 178,000 $ 154,000 Income statement for current year Sales $ 80,000 Cost of goods sold (43,000 ) Expenses (30,000 ) Net income $ 7,000 Additional data: Bought fixed assets for cash, $12,000. Paid $6,000 on the long-term note payable. Sold unissued common stock for $18,500 cash. Declared and paid a $2,000 cash dividend. Incurred the following expenses: depreciation, $4,000; wages, $12,000; taxes, $2,000; and other, $12,000. Required: 1. Prepare the statement of cash flows T-accounts using the indirect method to report cash flows from operating activities. (Enter all amounts as positive values.