P12-2 Preparing a Statement of Cash Flows (Indirect Method) LO12-1, 12-2, 12-4, 12-6 BG Wholesalers is developing 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: Prior Year Current Year Balance sheet at December 31 $ 39,400 31,600 31,600 40,500 Cash 36,300 Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreeiation 45,000 125,600 (34,000) $212,300 102,700 (27,100) $179,300 $ 31,600 4,000 52,900 74,700 16,100 $40,300 Accounts payable Accrued wages expense Note payable, long-term Contributed capital Retained earnings 3,500 47,500 94,400 26,600 $212,300 $179,300 Income statenent for current year $137,000 87,000 39,500 S 10,500 Sales Cost of goods sold Other expenses Net income Additional Data: Additional Data: a. Bought equipment for cash, $22,900. b. Paid $5,400 on the long-term note payable. c. Issued new shares of stock for $19,700 cash d. No dividends were declared or paid. e. Other expenses included depreciation, $6,900; wages, $20,500; taxes, $6,200; other, $5,900. f 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.) BG WHOLESALERS 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: Cash flows from investing activities: Cash flows from investing activities: Cash flows from financing activities