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 $ 66,950 18,450 25, 150 212,850 (62,000) $261,400 $ 12,200 4,700 62,500 102,500 79,500 $261,400 $ 66,000 25,150 19,600 152,800 (47,250) $216,300 $ 22,400 5,300 75,500 67,200 45,900 $216,300 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $208,000 105,000 14,750 44,300 $ 43,950 Additional Data: a. Bought equipment for cash, $60,050. b. Paid $13,000 on the long-term note payable. c. Issued new shares of stock for $35,300 cash. d. Dividends of $10,350 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.) 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 $ 43,950 14,750 Increase in merchandise inventory Decrease in accounts payable 14,750 58,700 Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment 0 Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash payments for dividends Cash receipts from issuing stock Net cash used in financing activities 0