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1. Using the following balance sheets for September 30 and December 31, prepare a cash flow statement for the period using the indirect method.

		Ellis Electronics			Changes
		Balance Sheet			To Cash
Assets			Sept. 30	Dec. 31
	Current Assets
		Cash	$8,133	$6,156
		Accounts Receivable	$15,843	$16,537
		Inventory	$11,989	$15,338
		Prepaid Expenses	$2,850	$2,217
	Total Current Assets		$38,815	$40,248
	Long Term Assets
		Plant, Property & Equipment	$35,860	$41,560
		Less Accumulated Depreciation	$8,195	$8,732
		Plant, Property & Equipment (Net)	$27,664	$32,827
		Other Long Term Assets	$1,905	$1,905
	Total Long Term Assets		$29,569	$34,732
Total Assets			$68,384	$74,980
Liabilities and Owners Equity
Liabilities
	Current Liabilities
		Accounts Payable	$10,208	$10,755
		Accrued Wages	$1,636	$2,776
		Short term bank debt	$8,087	$8,087
	Total Current Liabilities		$19,931	$21,618
	Long Term Liabilities
		Bank Loan Payable	$26,013	$31,713
	Total Long-Term Liabilities		$26,013	$31,713
Total Liabilities			$45,943	$53,330
Owner's Equity
		Stockholder Investment	$14,680	$14,680
		Retained Earnings	$7,761	$6,970
Total Owner's Equity			$22,441	$21,650
Total Liabilities and Owner's Equity			$68,384	$74,980

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