The net changes in the balance sheet accounts of Windsor Corporation for the year 2008 are

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The net changes in the balance sheet accounts of Windsor Corporation for the year 2008 are
shown below.

Account Debit Credit
Cash $ 82,000
Short-term investments $121,000
Accounts receivable 83,200
Allowance for doubtful accounts 13,300
Inventory 74,200
Prepaid expenses 17,800
Investment in subsidiary (equity method) 20,000
Plant and equipment 210,000
Accumulated depreciation 130,000
Accounts payable 80,700
Accrued liabilities 21,500
Deferred tax liability 15,500
8% serial bonds 80,000
Common stock, $10 par 90,000
Additional paid-in capital 150,000
Retained earnings—Appropriation for bonded indebtedness 60,000
Retained earnings—Unappropriated 38,000
$643,600 $643,600
An analysis of the Retained Earnings—Unappropriated account follows:
Retained earnings unappropriated, December 31, 2007 $1,300,000
Add: Net income 327,000
Transfer from appropriation for bonded indebtedness 60,000
Total $1,687,000
Deduct: Cash dividends $185,000
Stock dividend 240,000 425,000
Retained earnings unappropriated, December 31, 2008 $1,262,000

1. On January 2, 2008 short-term investments (classified as available-for-sale) costing $121,000
were sold for $155,000.

2. The company paid a cash dividend on February 1, 2008.

3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in
2008 and 2007, respectively.

4. Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation
account during the year. No assets were retired during 2008.

5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was
recorded by the parent.

6. At January 1, 2008, the cash balance was $166,000.

Instructions

Prepare a statement of cash flows (indirect method) for the year ended December 31, 2008.
Windsor Corporation has no securities which are classified as cash equivalents.