the following information was taken from the records of glassett 283997

The following information was taken from the records of Glassett Produce Company for the year ended June 30, 2011.

Borrowed on long term notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Issued capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

Purchased equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000

Purchased treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Paid dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000

Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Retired bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000

Patent amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Sold long term investment (at cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200

Increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,300

Decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300

Increase in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,200

Increase in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Cash balance, July 1, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Instructions:

1. From the information given, prepare a statement of cash flows using the indirect method.

2. Briefly explain what an interested party would learn from studying the cash flow statement for Glassett Produce Company.