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:

Additional Data:

a.	Bought equipment for cash, $72,000.
b.	Paid $14,500 on the long-term note payable.
c.	Issued new shares of stock for $29,000 cash.
d.	Dividends of $4,900 were paid in cash.
e.	Other expenses included depreciation, $14,500; salaries and wages, $19,500; taxes, $24,500.
	f. 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. 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.)

PB12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] 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 Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable S 57,700 S 62,800 9,500 21.400 9.500 221,000 149,000 Accumulated Depreciation-Equipment (58,500) (44,000) 14,600 Equipment $256,200 $206,800 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings S 7,900 S 18,800 1,000 59.500 74,000 98,000 69,000 88,600 44,000 2,200 $256,200 $206,800 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $197,000 89,000 58,500 Net Income $ 49,500 Additional Data a. Bought equipment for cash, $72,000. b. Paid $14,500 on the long-term note payable c. Issued new shares of stock for $29.000 cash. d. Dividends of $4,900 were paid in cash. e. Other expenses included depreciation, $14,500; salaries and wages, $19,500; taxes, $24,500 f. 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