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 $ 55,610 35,180 38,180 120,900 (41,400) $208,319 $ 30,400 710 47,200 93,500 36,700 $288,310 $ 22,500 38,000 45,000 111,000 (34,500) $182.ee $ 26,500 1,000 57,000 69,00 28,500 $182,000 $109,000 65,500 30, 600 $ 12,900 Additional Data: a Bought equipment for cash, $9,900. b. Paid $10,000 on the long-term note payable. c Issued new shares of stock for $24,500 cash. d. Declared and paid a $4,700 cash dividend. e. Other expenses included depreciation, $6.900: salaries and wages, $10,900; taxes, $3,900; utilities. $8.900. 1. 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 2. Prepare the statement or cash Trows for the year endea vecember si using the indirect metnog, (Amounts to be deductes should be indicated with a minus slgn.) $ 12,9001 HUNTER COMPANY Statement et Cash Flow For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense $ Decrease in Accounts Recnivable Decrease in Inventory Increase in Accounts Payable Decrease in Salaries and Wagon Payable 6,900 2,900 6.900 3.900 (290) 20,310 33,210 Net Cash Used in Operating Activities Cash Flows from Investing Activities: Cash Payments to Purchase Equipment (9.900) (9.900) Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash Receipts from Issuing Stock Cash Payments on Notes Payable (long-term) Cash Payments for Dividends 24,500 (10,000) (4,700) 9.800 Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, Decomber 31 5 0