P12-3 (Algo) (Supplement A) Preparing a Statement of Cash Flows (Direct Method) Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The sta complete except for the statement of cash flows. The completed comparative balance sheets and income statement as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Current Year Prior Year $ 68,550 15,950 $ 63,900 23,150 209,750 (59,700) $ 257,700 $9,700 23,150 18,300 150,900 (46,050) $ 210,200 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $58,850. b. Paid $17,970 on the long-term note payable. c. Issued new shares of stock for $33,400 cash. d. Dividends of $680 were declared and paid. e. Other expenses all relate to wages. $ 19,900 1,600 4,700 53,930 71,900 99,600 66,200 92,870 47,500 $ 257,700 $ 210,200 $ 198,000 95,000 13,650 43,300 $ 46,050 f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: 0 $ 0