Indirect SCF

The following information is taken from Hafner Company's financial statements. Prepare the Operating Activities section of the Statement of Cash Flows for Hafner using the indirect method for the year $2008.($Note: Again, you may not need to use all information provided here as some information is for investing and financing activities.$)$

$($Hint: The net cash flows provided by operating activities after you make all adjustments should be $54,200!)$

Hafner Company

Balance Sheet

December $31$

$20082007$

Cash $ $30,900$ $ $10,200$

Accounts receivable $($net$)43,30020,300$

Inventory $35,00042,000$

Long$-$term investments $015,000$

Property, plant & equipment $236,500150,000$

Accumulated depreciation $(37,700)(25,000)$

$$308,000$ $$212,500$

Accounts payable $ $17,000$ $ $26,500$

Accrued liabilities $21,00017,000$

Long$-$term notes payable $110,00050,000$

Common stock $90,00090,000$

Retained earnings $70,00029,000$

$$308,000$ $$212,500$

Additional data:

$1.$ Sales for the year $2008$ were $$780,000$ and COGS for the year $2008$ was $400,000.$

$2.$ Net income for the year $2008,$ $$76,000.$

$3.$ Depreciation on plant assets for the year, $$12,700.$

$4.$ Sold the long$-$term investments for $$28,000.$

$5.$ Paid dividends of $$35,000.$

$6.$ Purchased machinery costing $$26,500,$ paid cash.

$7.$ Purchased machinery costing $$60,000$ and gave a long$-$term note payable.

$($Note: Transaction #$7$ is significant noncash investing and financing activities that should not affect the cash balance. While it should not be included in the SCF as it is a noncash transaction, you need this information to figure out the changes in PPE and Notes Payable accounts.$)$