Exercise 11-8 (Algo) Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets nts Skipped Assets eBook December 31, 2024 and 2023 2024 2023 Hint Print Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: ferences Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $112,750 78,400 $122,800 92,500 96,000 80,900 4,200 2,100 485,000 485,000 794,000 (429,000) 675,000 (270,000) $1,188,300 $1,141,350 Interest payable $100,000 6,150 $85,900 12,300 8,200 5,100 102,500 205,000 705,000 705,000 219,500 175,000 $1,141,350 $1,188,300 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Additional Information for 2024: 1. Net income is $70,000. 2. The company purchases $119,000 in equipment. No equipment was sold. 3 Depreciation expense is $159.000 3. Depreciation expense is $159,000. 4. The company repays $102,500 in notes payable. 5. The company declares and pays a cash dividend of $25,500. Required: Prepare the statement of cash flows using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities Net income $ 70,000 Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense 159,000 Decrease in accounts receivable Increase in inventory Increase in prepaid rent Increase in accounts payable Decrease in interest payable Increase in income tax payable Net cash flows from operating activities $ 229,000 Cash Flows from Investing Activities Purchase of equipment S Adjustments to reconcile net income to net cash flows from operating activities Depreciation expense Decrease in accounts receivable Increase in inventory Increase in prepaid rent Increase in accounts payable Decrease in interest payable Increase in income tax payable 159,000 Net cash flows from operating activities $ 229,000 Cash Flows from Investing Activities Purchase of equipment Net cash flows from investing activities Cash Flows from Financing Activities Payment of notes payable Payment of cash dividends + Net cash flows from financing activities Net decrease in cash Cash at the beginning of the period Cash at the end of the period S 0 0