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: Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment 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 Additional Data: a. Bought equipment for cash, $63,000. . Paid $10,000 on the long-term notes payable. E.Issued new shares of stock for $20,000 cash. Current Year AUDIO CITY INCORPORATED Statement of Cash Flows For the Year Ended December 31 $ 35,200 11,000 16,000 203,000 (45,000) $ 220,200 Flows from Operating Activities: come tments to Reconcile Net Income to Net Cash Provided by ating Activities $ 7,000 2,200 55,000 80,000 76,000 $ 220,200 $ 170,000 80,000 45,000 $ 45,000 Dividends of $4,000 were paid in cash. Other expenses included depreciation, $10,000; salaries and wages, $15,000; taxes, $20,000. 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. quired: repare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted uld be indicated by a minus sign.) $ 43,000 15,000 15,000 140,000 (35,000) $ 178,000 $ $ 17,000 1,000 65,000 60,000 35,000 $ 178,000 45,000

Audio City, incorporated, is developing ifs annual financial statements at December 31 The statements are complete except for the statement of cash fows. The completed comparative balance sheets and income staternent are summarized below Additionel Dete: Bought equipment for cash, $63,000 Paid $5,000 on the long-term notes payable. tssued new shares of stock for $20,000 cash Dividends of $4,000 were paid in cash. Other expenses inclucted depreciation, $10,000, salaries and wages, \$15,000, taxes, $20,000. 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. quired: repare the statement of cash flows for the current year ended December 31 using the indirect method (Amounts to be deducted utd be indicated by a minus sign.)