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

Current Year Prior Year Balance sheet at December 31 Casti Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 73.250 15.250 23.450 209.250 (574SD) $263.750 S 16.500 2.000 56.300 IOJ.950 *5.000 $263.750 $ 63.500 21.350 18.000 160,350 445.TSD) S2124SD $ 19.000 2.700 71,00D 65.900 58.85 $212450 Accounts payable Wages payable Note payable, long-term Common stock and additional paidan capital Retained earnings Income stulement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income S205.000 123.500 IL 700 51.00 $26.HOD Additional Data: a. Bought equipment for cash, $48,900. 6. Paid $14,700 on the long-term note payable. c. Issued new shares of stock for $38,050 cash. 2. Dividends of $650 were declared and paid. e. Other expenses all relate to wages. 4. 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