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 $ 66,950 $ 65,900 Accounts receivable Merchandise inventory 18,250 25,050 212,450 25,050 19,400 152,700 Property and equipment Less: Accumulated depreciation (61,700) (47,150) $215,900 $261,000 $ 12,100 Accounts payable $ 22,200 Wages payable 5,100 Note payable, long-term 4,600 62,400 102,100 75,000 Contributed capital 67,100 Retained earnings 79,800 46,500 $261,000 $215,900 Income statement for current year Sales $207,000 Cost of goods sold 104,000 Depreciation expense 14,550 Other expenses. 44,200 Net income $ 44,250 Additional Data: a. Bought equipment for cash, $59,750. b. Paid $12,600 on the long-term note payable. c. Issued new shares of stock for $35,000 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.) 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 0 0 Cash flows from investing activities: Cash payments to purchase fixed assets 0 Cash flows from financing activities: Cash payments on long-term note Cash payments for dividends Cash receipts from issuing stock $ 0 0