PA12-3 Preparing a Statement of Cash Flows (Indirect Method) ILO 12-2, LO 12-3, LO 12-4,LO 12-5 XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Previous Year Current Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment S 34,480 $ 29,500 28,200 38,200 124,000 102,000 (30,400) (25,200) 35,400 41.400 $204,880 $172,700 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 36,400 27,200 1,500 48,000 72,800 37,00025,200 1,280 39,800 89,800 $204,880 $172.700 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $122.000 71,000 38,000 Net inom S 12.400