The following are the December 31, 2009 post-closing trial balance and the December 31, 2010 adjusted trial balance of the Adair Company:

A review of the accounting records reveals the following additional information for 2010:
(a) Investments in bonds to be held to maturity were purchased at year-end for $8,600.
(b) A building was purchased for $28,000.
(c) A note payable was issued for $9,000.
(d) Common stock was issued for $14,500.
(e) Dividends of $6,500 were declared and paid.

Required
1. Using the direct method for operating cash flows, prepare a worksheet (spreadsheet) to support the 2010 statement of cash flows for the Adair Company.
2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is notnecessary.)

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12/31/09 Post-Closing Trial Balance 12/31/10 Adjusted Trial Balance Debit 2,700 7,300 8,100 10,000 Accounts Cash Accounts receivable Inventory Investments in bonds Property and equipmen 105,300 Accumulated depreciation Accounts Salaries payable Interest payable Notes payable Common stock, no par Retained earnings Sales Cost of goods sold Depreciation expense Salaries expense Other operating expenses Interest revenue Interest expense Income tax expense Credit Debit Credit 3,300 6,200 9,900 18,600 133,300 42,400 8,100 1,300 0 49,200 8,500 700 300 9,000 58,100 31,500 89,000 payable 43,600 38,000 48,800 6,800 12,000 1,700 1,200 900 6,000 133,400 247,500 Totals 133,400 247,500