P12-3 (Algo) (Supplement A) Preparing a Statement of Cash Flows (Direct Method) Sharp Screen Films, Inc., 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 as follows: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings $ 71,150 20,050 26,050 214,350 (63,700) $267,900 $ 13,700 4,700 59,990 104,500 85,010 $267,900 $ 66,400 26,050 21,000 153,800 (48,050) $219,200 $ 24,100 7,500 76,300 67,900 43,400 $219, 200 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $214,000 111,000 15,650 44,900 $ 42,450 Additional Data: a. Bought equipment for cash, $60,550. b. Paid $16,310 on the long-term note payable. c. Issued new shares of stock for $36,600 cash. d. Dividends of $840 were declared and paid. e. Other expenses all relate to wages. 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. negative amounts.) SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: 0 Net cash provided by operating activities Cash flows from investing activities: 0 O Cash flows from financing activities: 0 0