4 Sharp Screen Films, Incorporated, 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: 2 points Skipped eBook Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable 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 $ 66,100 $ 70,650 19,550 25,850 213,850 (63,000) $ 266,900 $ 13,300 4,100 60,370 104,000 85,130 $ 266,900 $ 212,000 109,000 15,150 44,700 $ 43,150 25,850 20,500 152,900 (47,850) $ 217,500 $ 23,600 7,300 76,100 67,700 42,800 $ 217,500 Additional Date: a. Bought equipment for cash, $60,950. b. Paid $15,730 on the long-term note payable. c. Issued new shares of stock for $36,300 cash. d. Dividends of $820 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Collections from customers Payments for wages Payments to suppliers Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment Net cash provided by investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock Cash payments for dividends Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year (280) 0 0 (280) $ 0