1 Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized follows: Current Year Prior Year 2 points Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation cBook $ 70,650 19,550 25,850 213,850 (63,000) $266,900 $ 13,300 4,100 60,370 $ 66,100 25,850 20,500 152,900 (47,850) $217,500 $ 23,600 7,300 76,100 Pint Accounts payable Wages payable Note payable, long-term Common stock and additional paid in capital Retained earnings 104,000 85, 130 $266,900 $ 67,700 42,800 $217,500 References Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $212,000 109,000 15, 150 44,700 $ 43,150 Additional Data: a. Bought equipment for cash. $60,950. b. Paid $15,730 on the long-term note payable. c. Issued new shares of stock for $36,300 cash. d. Dividends of $820 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. (List cash outflows as negative amounts.) 2 points Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. (List cash outflows as negative amounts.) Answer is not complete. SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Payments for wages 3.200 X Payments to suppliers (5,350) X Collections from customers 6.300 X OOO 4,150 Cash flows from investing activities: Cash payments to purchase property and equipment ol 60,950 60,950 Cash flows from financing activities: Cash payments for dividends Cash payments on long-term note Cash receipts from issuing stock (820) (15,730) 36,300 OOO OOOO Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year 19.750 4,550 70,650 X 75,200 IS