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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
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 Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 69,750 17,95 24,450 211,950 (61.400) $262,700 $ 11,600 2,500 58,500 101,800 88300 $262,700 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings $ 65,4ee 24,450 19, 100 151,700 (46.950 $213,700 $ 21,800 6,3ee 74,200 66,900 44.500 $213,700 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net Income $205,000 102,000 14,450 44,00 $ 44,550 Additional Data a. Bought equipment for cash. $60,250. b. Paid $15.700 on the long-term note payable, c. Issued new shares of stock for $34,900 cash d. Dividends of $750 were declared and paid e. Other expenses all relate to wages. 1. 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 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 Cash flows from investing activities Cash flows from financing activities
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