E12-24 (Algo) (Supplement C) Preparing a Statement of Cash Flows, Indirect Method: T-Account Method GolfGear & More, Inc., is a regional and online golf equipment retailer. The company reported the following for the current year: Purchased a long-term investment for cash, $24,000. Paid cash dividend, $13,500. Sold equipment for $13,500 cash (cost, $36,000, accumulated depreciation, $22,500). Issued shares of no-par stock, 400 shares at $14 per share cash. Net income was $27,700. Depreciation expense was $4,500. Its comparative balance sheet is presented below. Balances Balances 12/31/Current 12/31/Prior Year Year Cash 23,300 26,500 Accounts receivable 37,000 37,000 Merchandise inventory 84,000 75,500 Investments 24,000 Equipment 86,000 122,000 Accumulated depreciation (15,500) (33,500) Total 238,800 227,500 Accounts payable $ 15,500 $ 24,500 Wages payable 3,000 5,500 Income taxes payable 7,500 4,500 Notes payable 69,000 69,000 Common stock and additional paid-in 105,600 100,000 capital Retained earnings 38,200 24,000 Total $238,800 $227,500 Required: 1. Complete a T-account worksheet. Cash Operating Investing Financing 2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in proper format. (List cash outflows as negative amounts.) GOLFGEAR & MORE, INC., Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Changes in current assets and current liabilities: Cash flows from investing activities: Cash flows from financing activities