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: Balance sheet at December 31 Cash Accounts receivable Current Tear Prior Year 564,850 $ 63,700 22,050 15,750 22,850 18,200 150,700 Merchandise inventory Property and equipment 209,450 Less Accumulated depreciation (59,500) (45,950) $253,400 $209,500 Accounts payable $9,400 $19,700 Wages payable 2,500 3,000 Note payable, long-term 60,600 71,400 Common stock and additional paid-in capital 99,300 66,100 Retained earnings 1,600 49,300 $253,400 $209,500 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $197,000 94.000 13,550 43,200 $ 46,250 Additional Data: a. Bought equipment for cash, $58,750. b. Paid $10,800 on the long-term note payable. c. Issued new shares of stock for $33,200 cash. d. Dividends of $13,950 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. 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: Balance sheet at December 31 Cash Accounts receivable Current Tear Prior Year 564,850 $ 63,700 22,050 15,750 22,850 18,200 150,700 Merchandise inventory Property and equipment 209,450 Less Accumulated depreciation (59,500) (45,950) $253,400 $209,500 Accounts payable $9,400 $19,700 Wages payable 2,500 3,000 Note payable, long-term 60,600 71,400 Common stock and additional paid-in capital 99,300 66,100 Retained earnings 1,600 49,300 $253,400 $209,500 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $197,000 94.000 13,550 43,200 $ 46,250 Additional Data: a. Bought equipment for cash, $58,750. b. Paid $10,800 on the long-term note payable. c. Issued new shares of stock for $33,200 cash. d. Dividends of $13,950 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. 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.) 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 Cash flows from investing activities Cash flows from financing activities