The following is Blue Man Corp.€™s comparative balance sheet accounts at December 31, 2008 and 2007, with a column showing the increase (decrease) from 2007 to 2008.

Additional information:
1. On December 31, 2007, Blue Man acquired 25% of Blige Co.€™s common stock for $275,000. On that date, the carrying value of Blige€™s assets and liabilities, which approximated their fair values, was $1,100,000. Blige reported income of $120,000 for the year ended December 31, 2008. No dividend was paid on Blige€™s common stock during the year.
2. During 2008, Blue Man loaned $300,000 to TLC Co., an unrelated company. TLC made the first semi-annual principal repayment of $37,500, plus interest at 10%, on December 31, 2008.
3. On January 2, 2008, Blue Man sold equipment costing $60,000, with a carrying amount of $35,000, for $40,000 cash.
4. On December 31, 2008, Blue Man entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Blue Man made the first rental payment of $60,000 when due on January 2, 2009.
5. Net income for 2008 was $370,000.
6. Blue Man declared and paid cash dividends for 2008 and 2007 as shown below.

Instructions
Prepare a statement of cash flows for Blue Man Corp. for the year ended December 31, 2008, using the indirectmethod.

Transcribed Image Text:

Comparative Balance Sheets 2 Property, plant and equipment Accumulated depreciation Investment in Blige Co. Income taxes payable Capital stock, common, $1 par Additional paid-in capital Retained earnings 2 Total liabilities and stockholders' equity 2008 2007 Declared Paid December 15, 2008 February 28, 2009 December 15, 2007 February 28, 2008 $100,000 Amount s80,000