Item11

ItemSkipped

Item 11

Item 11 Item Skipped

XS Supply Company 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:

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	31,850		$	26,750
Accounts Receivable		33,000			27,000
Inventory		39,000			37,000
Equipment		106,000			90,000
Accumulated DepreciationEquipment		(28,000	)		(24,000	)
Total Assets	$	181,850		$	156,750
Accounts Payable	$	34,000		$	26,000
Salaries and Wages Payable		1,050			1,150
Note Payable (long-term)		29,000			34,000
Common Stock		82,600			71,600
Retained Earnings		35,200			24,000
Total Liabilities and Stockholders Equity	$	181,850		$	156,750
Income Statement
Sales Revenue	$	110,000
Cost of Goods Sold		65,000
Other Expenses		33,800
Net Income	$	11,200

Additional Data:

1. Bought equipment for cash, $16,000.
2. Paid $5,000 on the long-term note payable.
3. Issued new shares of stock for $11,000 cash.
4. No dividends were declared or paid.
5. Other expenses included depreciation, $4,000; salaries and wages, $19,000; taxes, $5,000; utilities, $5,800.
6. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

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 with a minus sign.)