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Comparative balance sheets for Byron Manufacturing as of December 31, 20Y8 and 20Y7 are shown. Complete the Changes column to determine net cash flows during the year.

Byron Manufacturing Balance Sheets As of December 31, 20Y8 and 20Y7
Assets	20Y8	20Y7
Current assets:
Cash	5,390	9,420
Accounts receivable	10,410	9,060
Inventory	19,880	18,520
Total current assets	35,680	37,000
Property, plant, and equipment
Building	500,000	500,000
Equipment	279,000	272,200
	779,000	772,200
Accumulated depreciation	(147,550)	(119,900)
Net property, plant, and equipment	631,450	652,300
Total assets	667,130	689,300
Liabilities and Equity
Current liabilities:
Accounts payable	55,340	36,090
Salaries payable	9,680	11,900
Income taxes payable	1,300	9,810
Total current liabilities	66,320	57,800
Long-term liabilities:
Bonds payable	353,000	397,000
Equity:
Common stock	180,000	148,000
Retained earnings	67,810	86,500
Total equity	247,810	234,500
Total liabilities and equity	667,130	689,300

Additional information needed to prepare the statement of cash flows using the indirect method:

1. Net income was $2,840
2. Byron paid $21,530 in cash dividends
3. Byron issued $47,370 in bonds payable for cash
4. Byron retired $91,370 in bonds with cash
5. No fixed assets were sold or disposed of during the period

Now prepare the statement of cash flows for Byron Manufacturing using the indirect method. Select Increase or Decrease and enter the amounts.

Byron Manufacturing Spreadsheet to Prepare the Statement of Cash Flows For the Year Ended December 31, 20Y8
	Beginning		Increase/Decrease			Ending
Balance Sheet Accounts	Balance		Debit	Credit		Balance
Cash					(m)
Accounts receivable	9,060	(h)	1,350			10,410
Inventory	18,520	(i)				19,880
Building	500,000					500,000
Equipment	272,200	(b)				279,000
Accumulated depreciation	119,900				(c)	147,550
Accounts payable	36,090			19,250	(j)	55,340
Salaries payable	11,900	(k)				9,680
Income taxes payable	9,810	(l)	8,510			1,300
Bonds payable	397,000	(e)			(d)	353,000
Common stock	148,000			32,000	(f)	180,000
Retained earnings	86,500	(g)			(a)	67,810
			Increase/Decrease in Cash
Statement of Cash Flows			Debit	Credit
Cash flow from operating activities
Net income		(a)
Adjustments to reconcile net income to net cash flow from operating activities
Depreciation expense		(c)
Increase in accounts receivable				1,350	(h)
Increase in inventory					(i)
Increase in accounts payable		(j)	19,250
Decrease in salaries payable					(k)
Decrease in income taxes payable				8,510	(l)
Cash flows from investing activities
Purchase equipment					(b)
Cash flows from financing activities
Issued bonds payable		(d)
Retired bonds payable					(e)
Issued common stock		(f)	32,000
Paid dividend					(g)
Net increase (decrease) in cash		(m)
			266,280	266,280

Now you can prepare the Statement of Cash Flows using the indirect method. Fill in the Statement based on the spreadsheet. Select Increase or Decrease and enter the amounts.

Byron Manufacturing Statement of Cash Flows For the Year Ended December 31, 20Y8
Cash flows from operating activities:
Net income		$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense	$
Increase in accounts receivable	(1,350)
Increase in inventory
Increase in accounts payable	19,250
Decrease in salaries payable
Decrease in income taxes payable	(8,510)	33,460
Net cash provided by operating activities		$ 36,300
Cash flows from investing activities:
Purchase of equipment	$ (6,800)
Net cash used for investing activities		(6,800)
Cash flows from financing activities:
Proceeds from issuance of bonds payable	$
Retired bonds payable	(91,370)
Issued common stock
Payment of dividends	(21,530)
Net cash used for financing activities		(33,530)
Net increase (decrease) in cash		$
Cash, 1/1/20Y8
Cash, 12/31/20Y8		$

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