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 $ 66,650 19, 150 25, 750 213, 450 (62, 700) 262,300 $ 13, 100 $ 65,900 25, 750 20, 300 152, 500 (47, 750) $ 216, 700 $ 23, 200 5, 700 76,000 67,500 44, 300 $ 216, 700 5,200 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings 63,300 103,900 76,800 $ 262,300 year Income statement for current Sales Cost of goods sold Depreciation expense Other expenses Net income $ 211,000 108,000 14,950 44,600 $ 43, 450 Additional Data: a. Bought equipment for cash, $60,950. b. Paid $12,700 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $10.950 were declared and paid. e. Other expenses all relate to wages. f. 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.) 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.) SHARP SCREEN FILMS, INC. $ 43,450 Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $ Decrease in accounts receivable Increase in merchandise inventory Decrease in accounts payable Decrease in wages payable 14,950 6,600 (5,450) (10,100) (500) 5,500 48,950 Cash flows from investing activities: Cash payments to purchase property and equipment 0 Cash flows from financing activities: Cash receipts from issuing stock Cash payments on long-term note Cash payments for dividends 0 Net cash provided by financing activities Net decrease in cash during the year Cash balance, December 31, current year Cash balance, January 1, current year $ 0