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 Balance sheet at December 31 Cash 5.5.100 5 57.000 Accounts Receivable 19,000 25,000 Inventory 28. 25,000 Equipment 249.00 360,000 Accumulated Depreciation-Equipment (25.) (55.000 Total Assets S 100 524270 Accounts Payable $ 9.000 $ 21,000 Salaries and ages Payable 2,100 Note Payable Clong-term) 65.000 85.000 Cowon Stock 120,00 0.00 Retained Earnings 104.000 59, Total Liabilities and StockholdersEquity 100 100 2ND Income Statement Sales Revenue $ 230,000 Cost of Goods Sold 100.000 other Expenses 25,000 Net Income Additional Data: a. Bought equipment for cash, 583,000, b. Paid $20,000 on the long-term note payable. cIssued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash e. Other expenses included depreciation, $20,000; salaries and wages, $25,000, taxes, $30,000 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 Required: 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.) $ 55,000 AUDIO CITY INC 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: Depreciation Expense Decrease in Accounts Receivable Increase in Inventory Decrease in Accounts Payable Increase in Salaries and Wages Payable 0 55,000 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0