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.