Newark Company is preparing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

Additional Information:

1. Other expenses included depreciation, $7,400; wages, $20,700; taxes, $6,900; other, $4,700.
2. Bought equipment for cash, $22,800.
3. Paid $7,100 on the long-term note payable.
4. Issued new shares of stock for $20,000 cash.
5. No dividends were declared or paid.
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 year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.)

Current YearPrior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 39,900 36,800 44,000 126,100 (34,700) $ 212,100 $ 40,700 3,700 48,000 94,900 24,800 $ 212,100 $ 31,900 31,800 41,000 103,300 (27,300) $ 180,700 32,100 4,100 55,100 74,900 14,500 $180,700 Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $ 139,000 89,000 39,700 $ 10,300