Sanders Company's current year income statement, comparative balance sheets, and additional information follow. For the year,

$(1)$

$$all

sales are credit sales,

$(2)$

$$all credits to Accounts Receivable reflect cash receipts from customers,

$(3)$

$$all purchases of inventory are on

credit,

$(4)$

$$all debits to Accounts Payable reflect cash payments for inventory, and

$(5)$

$$Other Expenses are paid in advance and are

initially debited to Prepaid Expenses.

Additional Information on Current Year Transactions

a

$.$

$$The loss on the cash sale of equipment was $

$8$

$,$

$100($

details in

b $)$

$.$

b

$.$

$$Sold equipment costing $

$75$

$,$

$000$

$,$

$$with accumulated depreciation of $

$48$

$,$

$000$

$,$

$$for $

$18$

$,$

$900$

$$cash$.$

c

$.$

$$Purchased equipment costing $

$162$

$,$

$000$

$$by paying $

$36$

$,$

$000$

$$cash and signing a long

$-$

term note payable for the balance.

d

$.$

$$Borrowed $

$5$

$,$

$000$

$$cash by signing a short

$-$

term note payable.

e

$.$

$$Paid $

$105$

$,$

$000$

$$cash to reduce the long

$-$

term notes payable.

f

$.$

$$Issued

$5$

$,$

$200$

$$shares of common stock for $

$20$

$$cash per share.

g

$.$

$$Declared and paid cash dividends of $

$229$

$,$

$900$

$.$

Prepare the Statement of Cash flows for the year ended December

$31$

$,$

$$current year using the Direct Method. Hint Use

the Cash T

$-$

account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as

negative values.

Post

$-$

closing

$-$

$$Dates: December

$31$

$-$

$$to:

Prepare the Cash Flow Statement