21 Audio City, Inc., 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 below 04 DOS Book Current Previous Year Year $ 15,00 $ 17,000 19.000 25.000 20.00 25.000 243,000 150.00 25.000 (55.000 $100,100 5242,000 $ 9,000 521.000 2.100 1.00 65.000 35.000 120,000 30.000 104.000 55.000 500,100 $ 22,00 Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Payable Note Payable (longterm) Cowon Stock Retained tants Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Heterences $ 230,000 100,000 25,000 Additional Data: a. Bought equipment for cash, 583,000 b. Paid $20.000 on the long-term note payable Issued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash e. Other expenses included depreciation, $20,000 salaries and wages, 525,000, taxes$30,000 Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash Required: should be indicated by a minus sign) per la parte the statement of cash nowa for the current year ended December 3 using the indirect method (Amounts to be deducted AUDIO CITY INC Statement of Cash Flow For the Year Ended Decenter Cash Flows from Operating Activities 21 cissued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash e Other expenses included depreciation, $20,000 salaries and wages. $25,000 taxes, $30,000 1. Accounts Payable includes only inventory purchases made on credit. Because alability relating to taxes does not exist, assume that they were fully paid in cash 04 points 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 by a minus sign.) Book References AUTO CITY INC. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Net Income Adjustments to Reconcilie Net Income to Net Cash Provided by Operating Activities 55.000 0 55.000 Cash Flows from Investing Adi Cash Flows from Financing Activities