2 33 points P12-2 (Static) Preparing a Statement of Cash Flows (Indirect Method) LO12-1, 12-2, 12-4, 12-6 BGP Electrical Supply 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: eBook Print Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Current Year Prior Year $ 37,000 $ 29,000 32,000 28,000 41,000 132,000 38,000 111,000 (41,000) (36,000) $201,000 5170,000 Accounts payable $ 36,000 $ 27,000 Accrued wages expense 1,200 References Note payable, long-term Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income 1,400 38,000 44,000 Common stock and additional paid-in capital 88,600 72,600 37,200 $201,000 25,000 5170,000 $120,000 70,000 37,800 $ 12,200 Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other, $6,800. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.