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s developing its annual financial statements at December 31, curent year. The statements are complete except for the statement of cash flows The completed comparative
s developing its annual financial statements at December 31, curent year. The statements are complete except for the statement of cash flows The completed comparative balance sheets and income statement are summarized as tollows Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory 68.450 15.750 22.850 209 450 2 850 8.200 150 800 45 Accounts payable Wages payable Note payable Contributed c 4 500 60,600 9.300 83.200 500 1,400 66,100 50,900 term Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income 197 000 94,000 13,550 Additional Data a. Bought equipment for cash, $58,650 b Paid $10,800 on the long-term note payable C issued new shares of stock for $33 200 cash d Dividends of $13,960 were declared and pad e Other expenses al relate to wages t 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 (List cash outhlows as negative amounts
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