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	$	33,700			$	19,200
Accounts receivable		26,700				30,400
Merchandise inventory		39,900				36,700
Fixed assets (net)		74,900				73,100
	$	175,200			$	159,400
Accounts payable	$	28,500			$	22,800
Wages payable		2,400				2,200
Note payable, long-term		43,200				49,600
Common stock, no par		75,700				60,800
Retained earnings		25,400				24,000
	$	175,200			$	159,400
Income statement for current year
Sales	$	86,000
Cost of goods sold		(49,000	)
Expenses		(33,000	)
Net income	$	4,000

Additional data:

1. Bought fixed assets for cash, $8,000.
2. Paid $6,400 on the long-term note payable.
3. Sold unissued common stock for $14,900 cash.
4. Declared and paid a $2,600 cash dividend.
5. Incurred the following expenses: depreciation, $6,200; wages, $12,600; taxes, $2,600; and other, $11,600.

P12-6 Part 1

Required:

1. Prepare statement of cash flows T-accounts using the indirect method to report cash flows from operating activities. (Enter all amounts as positive values.)

Prepare the statement of cash flows. (List cash outflows as negative amounts.)