1PP3 – Statement of cash flows Hunter Company (P13-5) The following financial statements are available for Hunter Company on December 31, 2004. Hunter Company Comparative Balance Sheets Dec. 31, 2003 Dec. 31, 2004 Assets Cash $18,000 $44,000 Accounts Receivable 29,000 27,000 Inventory 36,000 30,000 Property & Equipment - net 72,000 75,000 Total Assets $155,000 $176,000 Liabilities and Equity Accounts payable - trade $22,000 $25,000 Wages payable 1,000 800 Note payable, long-term 48,000 38,000 Common Stock 60,000 80,000 Retained Earnings 24,000 32,200 Total Liabilities and Stockholders' Equity $155,000 $176,0002 Hunter Company Income Statement For year ended December 31, 2004 Revenues $100,000 Expenses Cost of Goods Sold 61,000 Wages and Salaries Expense 10,000 Depreciation Expense 6,000 Income Tax Expense 3,000 Other Expenses 8,000 Total (88,000) Net Income $12,000 Other available information: a. Bought fixed assets for cash, $9,000. b. Paid $10,000 on the long-term note payable. c. Sold unissued common stock for $20,000 in cash. d. Declared and paid $3,800 cash dividend. Required: Prepare a Statement of Cash Flows for Hunter Company for the year ended December 31, 2004.3 Hunter Company – Statement of Cash Flows Problem PP&E - net Notes Payable Common Stock Retained
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