4. Use the following information to prepare a statement of cash flows for Hanson Inc. for 2007 using the indirect method.
(a) Net income $20,000; depreciation expense, $5,000; inventory decrease, $1,000; accounts receivable increase of $5,000; accounts payable increase of $4,000).
(b) Issued common stock for $4,000 cash.
(c) Sold equipment for $8,000 cash (no gain or loss on sale).
(d) Paid cash dividend, $3,000.
(e) Paid back long-term note payable principal, $8,000.
(f) Purchased equipment for $12,000 in exchange for a note payable due in two years (no cash paid.)

Question

4.	Use the following information to prepare a statement of cash flows for Hanson Inc. for 2007 using the indirect method.  
(a) Net income $20,000; depreciation expense, $5,000; inventory decrease, $1,000;  accounts receivable increase of $5,000; accounts payable increase of $4,000).
(b) Issued common stock for $4,000 cash.
(c) Sold equipment for $8,000 cash (no gain or loss on sale).
(d) Paid cash dividend, $3,000.
(e) Paid back long-term note payable principal, $8,000.
(f) Purchased equipment for $12,000 in exchange for a note payable due in two years (no cash paid.)