Use the data in Short Exercise S12-5 to prepare Edwards Corporations' statement of cash flows for the year ended June 30, 20X8. Edwards uses the indirect method for operating activities. Use Exhibit 12-7, page 630, as a guide, but you may stop after determining the net increase (or decrease) in cash.
Data in Short Exercise S12-5

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$100,000 35,000 s Cost of goods Net income Payment of dividends Proceeds from issuance 6,000 Other operating expenses Purchase of equipment Decrease in current liabilities.... 5,000 30,000 Proceeds from sale of land....60,000 8,000 of common stock 20,000 Sales revenue Increase in current 224,000 Payment of note payable assets other than cash... 30,000 Depreciation expense Purchase of treasury stock 5,000 Statement of Cash Flows- Indirect Method EXHIBIT 12-7 The Roadster Factory, Inc. (TRF) Statement of Cash Flows (Indirect Method) For the Year Ended December 31,20X9 In thousands) Cash flows from operating a cti vities: S 50 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 18 Gain on sale of plant assets Increase in a Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in salary and wage payable Decrease in accrued liabilities ccounts receivable (15) 34 (2) 27 Net cash provided by operating activities Cash flows from investing activities: Acquisition of plant assets Loan to another company Proceeds from sale of plant assets S(196) (21) 62 Net cash used for investing activities (155) Cash flows from finaning acivities: Proceeds from issuance of long-term debt Proceeds from issuance of common Payment of long-term d Payment of dividends 94 (17) Net cash provided by fina ncing avctivities 70 S (8) 42 S 34 Net (decrease) in Cash balance, December 31, 20X8 Cash balance, December 31, 20x9