&ICD- Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 201 statements are complete except for the statement of cash flows. The completed comparative b sheets and income statement are summarized as follows: 2015 2014 Balance sheet at December 31 Cash 67,250 20,050 26,050 214,350 (63,700) $ 66,400 26,050 21,000 153,300 (48,050) Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $264,000 $218,700 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $ 13,700 5,500 64,200 104,500 76,100 24,100 6,100 76,300 67,900 44,300 $264,000 $218,700 Income statement for 2015 Sales Cost of goods sold Depreciation expense Other expenses $214,000 111,000 15,650 44,900 Net income $ 42,450 Additional Data a. Bought equipment for cash, $61,050. b. Paid $12,100 on the long-term note payable. C. Issued new shares of stock for $36,600 cash. d. Dividends of $10,650 were declared and paid. e. Other expenses all relate to wages f. Accounts payable includes only inventory purchases made on credit Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, 2015 (List cash outflows as negative amounts.) enove New lab DSM-5& ICD SHARP SCREEN FILMS, INC: Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities: Net income 42,450 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 15,650 $ Increase in merchandise inventory (5,050) Decrease in wages payable (600) Decrease in accounts receivable 6,000 Decrease in accounts payable 16,000 Net cash provided by operating activities 58,450 Cash flows from investing activities Cash payments to purchase fixed assets (61,050) Net cash used in investing activities (61,050) Cash flows from financing activities: Cash receipts from issuing stock 36,600 (10,650) Cash payments for dividends (12,100) Cash payments on long-term note Net cash provided by financing activities 13,850 Net increase in cash during the year Cash balance, January 1, 2015 0 Cash balance, December 31, 2015 $ enove