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 $ 64,750 15,450 22,650 209,350 (59,300 $252,900 $ 9,200 2,200 60,500 $ 63,400 22,650 18,100 150,400 (45,850 $208,700 200 $ 19,400 2,800 71,100 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings 98,700 66,000 82,300 $ 252,900 49,400 $208,700 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $196,000 93,000 13,450 43, 100 $ 46,450 Additional Data: a. Bought equipment for cash, $58,950. b. Paid $10,600 on the long-term note payable. c. Issued new shares of stock for $32,700 cash. d. Dividends of $13,550 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 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 Cash flows from investing activities: Cash flows from financing activities: 13,450 (10,200) (600) $ 69 $ 46,450 2,650 49,100 0 0 0