Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

	Current Year				Prior Year
Balance sheet at December 31
Cash	$	65,650			$	64,500
Accounts receivable		16,250				23,350
Merchandise inventory		23,350				18,600
Property and equipment		210,550				152,000
Less: Accumulated depreciation		(60,400	)			(46,250	)
	$	255,400			$	212,200
Accounts payable	$	10,300			$	20,400
Wages payable		3,300				3,600
Note payable, long-term		61,600				72,500
Contributed capital		100,300				66,400
Retained earnings		79,900				49,300
	$	255,400			$	212,200
Income statement for current year
Sales	$	200,000
Cost of goods sold		97,000
Depreciation expense		14,150
Other expenses		43,500
Net income	$	45,350

Additional Data:

Bought equipment for cash, $58,550.

Paid $10,900 on the long-term note payable.

Issued new shares of stock for $33,900 cash.

Dividends of $14,750 were declared and paid.

Other expenses all relate to wages.

Accounts payable includes only inventory purchases made on credit.

Required:

1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.)

**I am also seeking some explanations on this if possible. For instance, why is depreciation expense accounted for but not "accumulated depreciation" (if this is correct);