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 $ 73,250 15,250 23,450 209,250 (57 450) $263,750 $ 16,500 2,000 56,300 103,950 85,000 $ 63,500 21,350 18,000 160,350 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $217,450 $ 19,000 2,700 71,000 65,900 58,850 $263,750 $217 450 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $205,000 123,500 11,700 43,000 26,800 Additional Data: a. Bought equipment for cash, $48,900. b. Paid $14,700 on the long-term note payable c. Issued new shares of stock for $38,050 cash. d. Dividends of $650 were declared and paid e. Other expenses all relate to wages f. Accounts payable includes only inventory purchases made on credit