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:

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 S 67,350 18,550 25,350 213,150 (62,400) 262,000 $ 65,900 25,350 20,000 152,900 (47.350) Properly and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings 12,40022,700 5,200 75.800 67,300 45,800 $216.800 4,800 62,600 102,800 79,400 32021003 210,600 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income 209,000 106,000 15,050 44.400 43,550 Additional Data: a. Bought equipment for cash, $60,250 b. Paid S13,200 on the long-term note payable. c. Issued new shares of stock for $35,500 cash. d. Dividends of $9,950 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.) SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities Net income $ 26,800 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 $ 11,700 6,100 (5,450) (2,500) (700) 9,150 35,950 Cash flows from investing activities Cash payments to purchase fixed assets (48,900) (48,900) Cash flows from financing activities Cash payments on long-term note Cash payments for dividends