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 18,250 25,050 212,450 (61,700) $261,000 $ 12,100 4,600 62,400 102,100 79,800 $ 261,000 $ 65,900 25,050 19,400 152,700 (47, 150) $215,900 $ 22,200 5,100 75,000 67,100 46,500 $215,900 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 $207,000 104,000 14,550 44,200 $ 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 $ $ 44,250 14,550 Increase in merchandise inventory Decrease in wages payable 14,550 58,800 Cash flows from investing activities: Cash flows from investing activities: Cash flows from financing activities