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Use the following information to prepare a statement of cash flows for Hanson Inc. for the year ended December 31, 2009 using the indirect method. Prepare a schedule for any non-cash items for disclosure, if appropriate. A. Net income $10,000 (depreciation expense, 5,000; inventory decrease, $1,000; no changes in accounts receivable or accounts payable) B. Issued capital stock for $4,000 of equipment. C. Sold equipment for $8,000, book value $8,000. D. Paid cash dividend, $3,000 (declared in prior year). E. Paid long-term debt principal, $8,000 and short-term debt principal, $2,000. F. Purchased equipment for $12,000 in exchange for a note payable due in two years. The cash balance on January 1, 2009 was $10,000.
Prepare a schedule of expected cash collections for September and prepare a schedule of expected cash disbursements during September for inventory purchases.
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