Audio City, Incorporated, 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 Year Previous Year Balance sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment $ 65,000 20,000 20,000 150,000 (45,000) $ 210,000 Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 60,000 15,000 22,000 223,000 (60,000) $ 260,000 $ 8,000 2,000 60,000 100,000 90,000 $ 260,000 $ 19,000 1,000 75,000 70,000 45,000 $ 210,000 $ 200,000 90,000 60,000 $ 50,000 Additional Data: : a. Bought equipment for cash, $73,000 b. Paid $15,000 on the long-term notes payable. c. Issued new shares of stock for $30,000 cash. d. Dividends of $5,000 were paid in cash. e. Other expenses included depreciation, $15,000: salaries and wages, $20,000; taxes, $25,000. 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.) AUDIO CITY INCORPORATED 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 Changes in Current Assets and Current Liabilities Decrease in Accounts Receivable Decrease in Accounts Payable 0 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0