10 7 points P12-1 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-1, 12-2, 12-4, 12-6 Sharp Screen Films, Incorporated, 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 as follows: eBook Print Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less Accumulated depreciation Accounts payable Wages payable References Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 67,850 $ 66,500 20,250 26,450 26,450 214,450 (63,800) $ 265,200 $ 13,800 5,600 64,500 104,900 76,400 21,100 153,500 (48,350) $ 219,200 $ 24,300 6,200 76,400 68,000 44,300 $ 265,200 $ 219,200 $ 215,000 112,000 15,450 45,000 $ 42,550 Additional Data: a. Bought equipment for cash, $60,950. b. Paid $11,900 on the long-term note payable. c. Issued new shares of stock for $36,900 cash. d. Dividends of $10,450 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 indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: 0 0 0 0 $ 0