20.00 points XS Supply Company is developing its annual financial statements at Decamber 31. The statements are complete exoept for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment S 33,440 28,400 27,800 37,600 96,000 (29,200) (24,600) 34,200 40,200 115,000 S193,640 165,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Eamings S 35,200 1.440 34,400 88,200 36,400 S 26,600 1,800 40,000 72,200 24,600 S193,640 165,000 Income Statement Sales Revenue Cost of Goods Sold Other Expenses 5 116,000 68,000 36,200 Net Income S 11,800 Additional Data a. Bought equipment for cash, 519,000. b. Paid $5,800 on the long-term note payable c. Issued new shares of stock for 514,000 cash d. No dividends were declared or paid. e. Other expenses included depreciation, 54,800; Salaries and wages, $19,800; taxes, S5,800; utilities, 56,400 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 Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities t Income 5 11,800 Adjustments to Provided by Operating Activities ile Net Income to Net Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages payab ble Net Cash Used in Operating Activities 11,800 Cash Flows from Investing Activities Cash Payments to Purchase Equipment Net Cash Used in Investing Activities Cash Flows from Finacng Activites Cash payments on Notes Payable ong-term) Cash Receipts from lssuing Stock Net Cash Provided by Financing Activities t Increase in Cash during the Year ash Balance, January 1 Cash Balance, December 31