Statement of Cash Flows Indirect Method compilation

Use the following information to prepare a statement of cash flows for the Bryan Manufacturing Company, Inc. for the year ended December 31, 2018. Use the indirect method for the operating activities section of the statement.

Information:

Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000.

Accounts receivable decreased $2,000, while inventories increased $4,000.

Accounts payable decreased $7,000.

During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.

The company borrowed $18,000 on a two-year note from the bank.

Dividends of $6,000 were paid in cash.

Preferred stock was issued to retire $7,000 of long-term notes payable.

The beginning cash balance was $22,000 and the ending balance was $32,000.

Required:

In the space below, prepare the Statement of Cash Flows in 2018 for Bryan Manufacturing Company, Inc. in good form using the indirect method for operating.