The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008, are… 1 answer below »

The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008, are presented below.

 BLUES TRAVELER CO.

Comparative Balance Sheets (partial)

December 31

2008

2007

Current Assets

Cash

$105,000

$99,000

Accounts receivable

110,000

85,000

Inventory

171,000

186,000

Prepaid expenses

27,000

32,000

Total current assets

$413,000

$402,000

Current liabilities  

Accrued expenses payable

$15,000

5,000

Accounts payable

88,000

$92,000

Total current liabilities

$103,000

$97,000

Blues Traveler’s net income for 2008 was $163,000. Depreciation expense was $30,000.

Instructions

Prepare the operating activities section of Blues Traveler’s statement of cash flows for the year ended December 31, 2008, using the indirect method.