Answer is complete but not entirely correct. SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts payable Decrease in accounts receivable Increase in merchandise inventory Decrease in wages payable $ 14,150 (10.100) 7,100 (4,750) Net cash provided by operating activities Cash flows from investing activities: $ 45,350 (300) 6,100 51,450 Cash payments to purchase fixed assets (58,550) Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note (10,900) 33,900 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 (14,750) (58,550) 8,250 59,700 66,800x $126,500