The following financial statements were provided by Roberts Company:

Roberts Company

Balance Sheets

At September 30, 20X1 and 20X2

1		20X1	20X2
2	Assets:
3	Cash	$23,000.00	$7,000.00
4	Accounts receivable	7,600.00	9,600.00
5	Inventory	20,800.00	18,000.00
6	Plant and equipment	40,000.00	60,000.00
7	Accumulated depreciation	(10,000.00)	(16,000.00)
8	Total assets	$81,400.00	$78,600.00
9	Liabilities and equity:
10	Accounts payable	$4,800.00	$3,200.00
11	Wages payable	1,200.00	800.00
12	Common stock	50,000.00	50,000.00
13	Retained earnings	25,400.00	24,600.00
14	Total liabilities and equity	$81,400.00	$78,600.00

Roberts company

Income Statement

For the Year ended September 30, 20X2

1	Sales		$40,000.00
2	Cost of goods sold
3	Beginning inventory	$20,800.00
4	Purchases	26,000.00
5	Ending inventory	(18,000.00)	(28,800.00)
6	Wages expense		(4,000.00)
7	Advertising		(2,000.00)
8	Depreciation expense		(6,000.00)
9	Net income (loss)		$(800.00)

At the end of 20X2, Roberts purchased some additional equipment for $20,000.

Required:

Prepare a statement of cash flows using the indirect method.

Amount Descriptions

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions
Add cost of goods sold
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventory
Decrease in wages payable
Depreciation expense
Increase in accounts payable
Increase in accounts receivable
Increase in inventory
Increase in retained earnings
Increase in wages payable
Net cash from financing activities
Net cash from investing activities
Net cash from operating activities
Net decrease in cash
Net income
Net loss
Net increase in cash
Purchase of common stock
Purchase of equipment
Sale of common stock
Sale of equipment

Statement of Cash Flows, Indirect Method

Prepare a statement of cash flows using the indirect method. (Note: Begin by entering the applicable income statement amounts as presented above. Use a minus sign to indicate a negative amount. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Roberts Company

Statement of Cash Flows

For the Year ended September 30, 20X2

1	Cash flows from operating activities:
2
3	Add (deduct) adjusting items:
4
5
6
7
8
9
10	Cash flows from investing activities:
11
12