2 XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 6 points eBook Print References Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $21,500. b. Paid $6,100 on the long-term notes payable. c. Issued new shares of stock for $16,500 cash. d. No dividends were declared or paid. Current Year Previous Year $ 34,240 35,200 $ 29,250 28,100 41,200 122,500 (30,200) $ 202,940 $ 36,200 38,100 101,000 (25,100) $ 171,350 $ 27,100 1,240 1,450 38,900 45,000 89,200 72,700 37,400 25,100 $ 202,940 $ 171,350 $ 121,000 70,500 38,200 $ 12,300 e. Other expenses included depreciation, $5,100; salaries and wages, $20,100; taxes, $6,100; utilities, $6,900. 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. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ 0