Question 10 HW12&5

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 $ 52,320 $ 22,000 Accounts Receivable 34,200 37,000 Inventory 37,200 44,000 Equipment 119,800 110,000 Accumulated Depreciation-Equipment (40, 800) (34,000) Total Assets $202,720 $179,000 Accounts Payable $ 29,800 $ 26,000 Salaries and Wages Payable 720 1,000 Note Payable (long-term) 44,000 56,000 Common Stock 92,000 68,000 Retained Earnings 36,200 28,000 Total Liabilities and Stockholders' Equity $202, 720 $179,000 Income Statement (current year) Sales Revenue $108,000 Cost of Goods Sold 65,000 Other Expenses 30, 200 Net Income $ 12,800 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. Saved 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 Your Ended December 31 Cash Flows from Operating Activities Adjustments to Reconcile Net Income to Not Cash Provided by Operating Activities: Cash Flows from investing Activities: Cash Flows from Financing Activities