Check my work 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: Previous Year Current Year Balance Sheet at December 31 14 points Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 60,0e0 65,00e 2e,80e 26,988 156,808 15,080 22,680 223,60 eRook Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $26a,8a 218,80e $ 8,0e0 $ 19,80e 1,96e 75,808 7e,800 45,80e 26e,68 216,808 Print 2,689 60,600 1e8,eee 98,883 Total Liabilities and Stockholders Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 200,e00 9e,0e0 68,800 $5e,680 Check my work 7 Additional Data a. Bought equipment for cash, $73,000. b. Paid $15,000 on the long-term note 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 14 points they were fully paid in cash. eRook Print 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 INC Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities 50,000 et Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities