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166 points Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented
166 points Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information. Current Year Prior Year Balance Sheet at Decembe Cash $10,565 $14,165 Accounts receivable 650 145 Prepaid expenses 1,050 Equipment 730 Accmulated depreciation (145 $13.850 $15,000 Wages payable 2,050 Short-term note payable 55 Common stock 4.800 4,800 Retained earnings 8.355 $13850 000 Income Statement for Current Year $53 000 Service revenue Depreciation expense 45 39.500 Salaries expense Other expenses 3150 205 Net income Additional Data a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for S730 cash at the beginning of the current year and recorded S145 of depreciation expense at the end of the current year d. At the end of the current year, the company signed a short-term note payable to the bank for $155 Required Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method (List cash outflows as negative amounts.)
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