33 points 1 eBook Print P12-1 (Static) Preparing a Statement of Cash Flows (Indirect Method) LO12-1, 12-2, 12-4, 12-6 Sharp Screen Films, Inc., 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 as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable References Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 73,250 15,250 $ 63,500 21,350 18,000 23,450 209,250 (57,450) $263,750 160,350 (45,750) 5217,450 5 19,000 $ 16,500 2,000 2,700 56,300 71,000 103,950 65,900 85,000 58,850 $263,750 $217,450 $205,000 123,500 11,700 43,000 $ 26,800 Additional Data: a. Bought equipment for cash, $48,900. b. Paid $14,700 on the long-term note payable. c. Issued new shares of stock for $38,050 cash. d. Dividends of $650 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit.