SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Collections from customers $ 214,700 Payments to suppliers Payments for wages 214,700 Cash flows from investing activities: Cash payments to purchase property and equipment Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock Cash payments for dividends 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 $ 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 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings $ 70,150 18,450 25, 150 212,850 (62,000) $264,600 $ 12,200 3,300 62,500 102,500 84,100 $264,600 $ 66,000 25, 150 19,600 152,000 (47,250) $215,500 $ 22,400 6,700 75,500 67,200 43,700 $215,500 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, $60,850. b. Paid $13,000 on the long-term note payable. c. Issued new shares of stock for $35,300 cash. d. Dividends of $780 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 direct method for the year ended December 31, current year. (List cash outflows as negative amounts.)