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 Prior Year Current Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 52,320 34,200 37,200 119,800 40,800 $202,720 $ 22,000 37,000 44,000 110,000 34,000 $179,000 $ 26,000 1,000 56,000 68,000 28,000 $179,000 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 29,800 720 44,000 92,000 36, 200 $202,720 Total Liabilities and Stockholders Equity Income Statement (current year) $108,000 65,000 30,200 $ 12,800 Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,800 b. Paid $12,000 on the long-term note payable c Issued new shares of stock for $24,000 cash. d Declared and paid a $4,600 cash dividend e. Other expenses included depreciation, $6,800; salaries and wages, $10,800; taxes, $3,800; utilities, $8,800 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 et Income $ 12,800 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Decrease in Salaries and Wages Pavable 12,800 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Payments to Purchase Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities Cash Payments on Notes Payable (long-term) Cash Payments for Dividends Cash Receipts from Issuing Stock Net Cash Provided by Financing Activities et Increase in Cash during the Year Cash Balance, January1 Cash Balance, December 31