PRIOR MONTH CURRENT MONTH DEBIT CREDIT DEBIT CREDIT HOMEWORK PROBLEM CASH 5,000 13,200 STATEMENT OF CASH FLOWS (INDIRECT METHOD) ACCOUNTS RECEIVABLE 1,000 500 FOR THE CURRENT MONTH PERIOD (not the prior period) PREPAID INSURANCE 3,000 3,500 EQUIPMENT 8,000 10,000 OPERATING LAND 3,000 3,000 Net income ACCUM. DEPRECIATION 4,000 6,000 Plus/minus - adjustments to reconcile net income to operating activities ACCOUNTS PAYABLE 1,000 400 "COMMON STOCK" 10,000 14,000 "RETAINED EARNINGS" 5,000 5,000 DIVIDENDS 500 TOTAL OPERATING ACTIVITIES - REVENUE 8,000