PREPARE CASH FLOW STATEMENT

1.Based on the following information, prepare a statement of cash flows for Year 2 using the indirect method. (20 points) The CFS Corporation Comparative Balance Sheet As of December 31, Year 1 and Year 2 December 31, Year 1 Assets Current assets Cash Accounts receivable Inventories Total current assets Property, plant, and equipment Land Building and equipment Accumulated depreciation Total property, plant,and equipment Total Assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Total current liabilities Noncurrent liabilities Bonds payable Notes payable Total noncurrent liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total Liabilities and Shareholders' Equity Year 2 $ 10,000 20,000 15,000 45,000 $30,000 15,000 20,000 65,000 10,000 100,000 (10,000) 100,000 $145,000 10,000 120,000 (20,000) 110,000 $175,000 $ 20,000 20,000 $ 30,000 30,000 50,000 20,000 70,000 40,000 30,000 70,000 20,000 35,000 55,000 $145,000 30,000 45,000 75,000 $175,000 Dividends paid during Year 2 are $0. There were no dispositions of property during the year