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	$	66,950			$	66,100
Accounts receivable		19,550				25,850
Merchandise inventory		25,850				20,500
Property and equipment		213,850				152,700
Less: Accumulated depreciation		(63,000	)			(47,850	)
	$	263,200			$	217,300
Accounts payable	$	13,300			$	23,600
Wages payable		5,300				5,600
Note payable, long-term		63,700				76,100
Contributed capital		104,000				67,700
Retained earnings		76,900				44,300
	$	263,200			$	217,300
Income statement for current year
Sales	$	212,000
Cost of goods sold		109,000
Depreciation expense		15,150
Other expenses		44,700
Net income	$	43,150

Additional Data:

1. Bought equipment for cash, $61,150.
2. Paid $12,400 on the long-term note payable.
3. Issued new shares of stock for $36,300 cash.
4. Dividends of $10,550 were declared and paid.
5. Other expenses all relate to wages.
6. 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.)

rev: 09_27_2016_QC_CS-63335

References

eBook & Resources

Financial StatementsLearning Objective: 12-01 Classify cash flow statement items as part of net cash flows from operating, investing, and financing activities.Learning Objective: 12-06 Report and interpret cash flows from financing activities.

SHARP SCREEN FILMS, INC.
Statement of Cash Flows
For the Year Ended December 31, Current Year
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
		0
		0
Cash flows from investing activities:
		0
Cash flows from financing activities:
		0
		$0

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.)