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.)

statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 32, 330 33, 400 39,400 109,000 (28,400) $185, 730 $ 34,400 1,130 30,800 83,800 35,600 $185,730 $ 27, 250 27,200 37,200 92,000 ( 24, 200) $159,450 $ 26,200 1,250 36,000 71,800 24, 200 $159,450 $112,000 66,000 34,600 $ 11,400 Additional Data: a. Bought equipment for cash, $17,000. b. Paid $5,200 on the long-term note payable. c. Issued new shares of stock for $12,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,200; salaries and wages, $19,200; taxes, $5,200; utilities, $6,000. 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. Statement of Lasn rioWS $ 11,400 For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense Cash Payments to Purchase Equipment Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Payments to Purchase Equipment 0 11,400 0 Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash Receipts from Issuing Stock Cash payments on Notes Payable (long-term) Net Cash Provided by Financing Activities 0 Cash Balance, January 1 Cash Balance, December 31 $ 0