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:

Return to question 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 $ 46, 220 25,200 28, 200 108,800 (36,200) $172,220 $ 23,800 820 36,000 79,000 32,600 $172,220 $ 17,000 27,000 34,000 100,000 (29,000) $149,000 $ 21,000 1,000 46,000 58,000 23,000 $149,000 $112,000 67,000 31,800 $ 13, 200 Return to qi 1 Sales Revenue Cost of Goods Sold Other Expenses Net Income $112,000 67,000 31,800 $ 13,200 Additional Data: a. Bought equipment for cash, $8,800. b. Paid $10,000 on the long-term note payable. c. Issued new shares of stock for $21,000 cash. d. Declared and paid a $3,600 cash dividend. e. Other expenses included depreciation, $7,200, salaries and wages, $11,200; taxes, $4,200; utilities, $9,200. 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.) Answer is complete but not entirely correct. 513.200 HUNTER COMPANY Statement of Cash Flows 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 Receivable Decrease in inventory Incresse in Accounts Payable Decresse in Salaries and Wages Payable OOOOO 1,100 5.100 2.100 (110) . 15,390 23.590 Ne: Cash Provided by Operating Activities Cash Flows from invesaing Activities: Cash Payments to Purchase Equipment Is 0 Ne: Cash Used in Invessing Activities Cash Flows from Financing Activities: Cash Payments on Notes Payable long-term Cash Receipts from Issuing Stock Cash Payments for Dividends ololol (10,000) 21.000 (3.600) 7.400 Ne: Cash Provided by Financing Activities Net Increase in Cesh during the Year Cash Balance, January 1 Cash Balance, December 31 13.500 $ 35,750