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. . Use the following information to prepare a statement of cash flows (indirect method) for Sink Industries for the year ended December 31, 2010:

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. . Use the following information to prepare a statement of cash flows (indirect method) for Sink Industries for the year ended December 31, 2010: Net income for the year 2010 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000, and accounts payable decreased $7,000. Depreciation expense included in net income was $8,000. . 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 $10,000 and the ending balance was $20,000. Required: Enter the correct amounts in each box as indicated from the information above and calculate the cash flows for each subsection. At the bottom of the statement, you will need to calculate and enter the change in cash for 2010 as well as the beginning and ending cash balances. Enter whole numbers without dollar signs or commas. Also, for negative amounts, enter a "-" sign in from of your answer. For example, enter $1,000 as 1000, and enter a negative ($1,000) as -1000. Sink Industries Statement of Cash flows For the Year Ended December 31, 2010 Cash flows from operating activities: Subtotals Net income Add or deduct items not affecting cash: Depreciation expense Accounts receivable Inventory Accounts payable Net cash flow from operating activities Cash flows from investing activities: Sale of property, plant, or equipment Acquisition of property, plant, or equipment Net cash flow from investing activities Cash flows from financing activities: Dividends Paid Notes Payable Long-term Debt Preferred Stock Net cash flow from financing tivities Net change in cash during 2010 Beginning cash balance Ending cash balance

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