E12-18 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-2, 12-4, 12-6 Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information. Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation Wages payable Short-term note payable Common stock Retained earnings Income Statement for Current Year Service revenue Depreciation expense Salaries expense other expenses Net income Current Year Prior Year $ 7,535 $9,885 1,250 610 650 105 570 0 (105) 0 $ 9,900 $10,600 0 460 $1,650 245 0 3,200 3,200 5,995 5,750 $ 9,900 $10,600 $45,000 105 35,500 9,150 $ 245 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $570 cash at the beginning of the current year and recorded $105 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $245. Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $570 cash at the beginning of the current year and recorded $105 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $245, Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: + Cash flows from financing activities