CLASSIFICATION OF CASH FLOWS
Fannin Company is a manufacturer of premium athletic equipment. Fannin reported the following inflows and outflows of cash during 2009.
|
Net income
|
$589,000
|
|
Increase in accounts receivable
|
32,000
|
|
Decrease in inventory
|
59,400
|
|
Decrease in prepaid insurance
|
45,800
|
|
Decrease in accounts payable
|
59,600
|
|
Decrease in income taxes payable
|
11,200
|
|
Increase in wages payable
|
21,600
|
|
Cash received from sale of investment
|
9,000
|
|
Cash paid for property, plant, and equipment
|
102,000
|
|
Depreciation expense
|
103,300
|
|
Proceeds from issuance of note payable
|
55,000
|
|
Payment on bonds payable
|
50,000
|
|
Cash received from issuance of common stock
|
25,000
|
|
Payment of cash dividends
|
55,000
|
Fannin had cash on hand at 1/1/09 of $218,500.
Required:
Prepare a properly formatted statement of cash flows using the indirect method.