4 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: Current Prior Year Year 9.57/10 points awarded Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation $ 34,000 35, eee 41, eee 121, eee (30,000) $ 29, eee 28,000 38, eee 100, eee (25,00) Scored $201,000 $170,000 eBook Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 36,000 1,200 38,eee 88,6ee 37,200 $ 27,000 $ 1,400 44,000 72,600 25,000 Print $ 201,600 $170,000 References Income Statement (Current year) Sales Cost of Goods Sold Other Expenses $120, eee 70, eee 37,800 Net Income 12,200 Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other, $6,800. 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 year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) XS SUPPLY COMPANY $ 12.200 Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable Increase in merchandise inventory Depreciation expense Increase in accounts payable Decrease in wages payable OOOOO (7,000) (4,000) X 5,000 9,000 (200) 2.800 15.000 Net cash provided by operating activities Cash flows from investing activities: Cash payments purchase equipment (21,000) (21,000) Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing shares olo (6,000) 16.000 Net cash provided by financing activities 10.000 Net increase in cash during the year 5,000 Cash balance, January 1 29.000 Cash balance, December 31 $ 34.000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted