PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 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 $ 32,090 $ 27,000 27,100 37,100 91,000 8,200)(24,100) 33,200 39,200 107,500 $183,790 $158,100 34,200 $ 26,100 1,200 35,000 71,700 24,100 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 1,090 29,900 83,200 35,400 $183,790 $158,100 Income Statement $111,000 65,500 34,200 Sales Revenue Cost of Goods Sold Other Expenses $ 11,300 Net Income Additional Data a. Bought equipment for cash, $16,500 b. Paid $5,100 on the long-term note payable c. Issued new shares of stock for $11,500 cash d. No dividends were declared or paid e. Other expenses included depreciation, $4,100; Salaries and wages, $19,100; taxes, $5,100; utilities $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 current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 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 Financing Activities