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 $ 38, 100 34,200 42,000 123,100 (31,900) $ 205,500 $ 38,000 2,100 45,800 91,300 28,300 $ 205,500 $ 30,600 29,700 38,900 101,300 (26,000) $174,500 $ 29,200 2,700 52,100 73,600 16,900 $174,500 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 $128,000 78,000 38,600 $ 11,400 Additional Data: a. Bought equipment for cash, $21,800. b. Paid $6,300 on the long-term note payable. c. Issued new shares of stock for $17,700 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,900; wages, $20,900; taxes, $6,300; other, $5,500. 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 receivable Increase in merchandise inventory Increase in accounts payable Decrease in accrued wages expense 0 0 Cash flows from investing activities: Cash payments to purchase property and equipment 0 Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock Increase in accrued wages expense 0 Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $ 0