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: Balance sheet at December 31 Ourrent Year Prior Year Cash Accounts receivable $ 54.950 $ 63,900 Merchandise inventory 15.950 23.150 33.150 28. 300 Property and equipment 209.750 150, 800 Less Accumlated depreciation (59.700) 45.050 5.254.100 $210.100 Accounts payable $ 9.700 $ 19.900 Sagos payable 2,700 3.100 Note payable, long-term 61.000 71.900 Common stock and additional paid in capital 99.600 66.200 Retained earnings BI. 100 49.000 5 254.100 $ 210, 100 Income statement for current year Sales $198.000 Cost of goods sold 95.000 Depreciation expense 13.650 $3.300 Other expenses 3 46.650 Net income Additional Data a. Bought equipment for cash, $58.950. b. Paid $10.900 on the long-term note payable c. Issued new shares of stock for $33,400 cash d. Dividends of $13.950 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: Not 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 wagos payablo 0 0 Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment 0 Net cash provided by investing activities Cash flows from financing activities: Cash payments on long-term note Cash payments for dividends Cash receipts from issuing stock 0 Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $ 0