Hunter Company is developing its annual financial statements at December 31, 2015. The statements are...
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Accounting
Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
2015
2014
Balance Sheet at December 31
Cash
$
45,330
$
16,500
Accounts Receivable
24,300
26,000
Inventory
27,300
33,000
Equipment
107,700
99,000
Accumulated DepreciationEquipment
(35,800
)
(28,500
)
$
168,830
$
146,000
Accounts Payable
$
23,200
$
20,500
Salaries and Wages Payable
830
1,000
Note Payable (long-term)
34,000
45,000
Common Stock
78,500
57,000
Retained Earnings
32,300
22,500
$
168,830
$
146,000
Income Statement for 2015
Sales Revenue
$
113,000
Cost of Goods Sold
67,500
Other Expenses
32,200
Net Income
$
13,300
Additional Data:
a.
Bought equipment for cash, $8,700.
b.
Paid $11,000 on the long-term note payable.
c.
Issued new shares of stock for $21,500 cash.
d.
Declared and paid a $3,500 cash dividend.
e.
Other expenses included depreciation, $7,300; salaries and wages, $11,300; taxes, $4,300; utilities, $9,300.
f.
Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required: 1. Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities
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