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: Current Year Previous Year Balance Sheet at December 31 Cash $ 34,000 $ 29,000 Accounts Receivable 35,000 28,000 Inventory 41,000 38,000 Equipment 121,000 100,000 Accumulated DepreciationEquipment (30,000 ) (25,000 ) Total Assets $ 201,000 $ 170,000 Accounts Payable $ 36,000 $ 27,000 Salaries and Wages Payable 1,200 1,400 Note Payable (long-term) 38,000 44,000 Common Stock 88,600 72,600 Retained Earnings 37,200 25,000 Total Liabilities and Stockholders Equity $ 201,000 $ 170,000 Income Statement Sales Revenue $ 120,000 Cost of Goods Sold 70,000 Other Expenses 37,800 Net Income $ 12,200 Additional Data: Bought equipment for cash, $21,000. Paid $6,000 on the long-term note payable. Issued new shares of stock for $16,000 cash. No dividends were declared or paid. Other expenses included depreciation, $5,000; salaries and wages, $20,000; taxes, $6,000; utilities, $6,800. 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.) Next Visit question mapQuestion 7 of 8 Total7 of 8 Prev