P12-1 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-1, 12-2, 12-4, 12-6 Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are com except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Poten. Accounts payable Wages payable *Note payable, long-term Common stock and additional paid-in capital Retained earnings $ 65,950 16,050 23,250 209,950 (60.100) $255, 100 $ 9,900 3,000 61,300 99,800 81, 100 $ 255, 100 $ 64,400 23,250 18,400 151,900 (46.150) $211,800 $ 20,000 3,200 72,100 66,300 50,200 $211, 800 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $199,000 96,000 13,950 43,400 $ 45,650 Additional Data: a. Bought equipment for cash, $58,050. b. Paid $10,800 on the long-term note payable. c. Issued new shares of stock for $33,500 cash, d. Dividends of $14,750 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit e. Uue expenses all relate w wayes. 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, current year. (List cash outflows a negative amounts.) SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 0 0 Cash flows from investing activities: 0 Cash flows from financing activities