BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 37,500 32,800 44,000 121,700 (31,100) $204,900 $ 36,900 1,700 44,800 90,000 31,500 $204,900 $ 29,900 29,000 38,400 100,900 (25,400) $172,800 $ 28,000 1,900 50,200 73,000 19,700 $172,800 Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $124,000 74,000 38,200 $ 11,800 Additional Data: a. Bought equipment for cash, $20,800. b. Paid $5,400 on the long-term note payable. C. Issued new shares of stock for $17,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,700; wages, $20,500; taxes, $6,800; other, $5,200. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) BGP ELECTRICAL SUPPLY 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 Increase in accounts payable Cash flows from investing activities: Cash flows from financing activities