Sharp Screen Films, Incorporated, 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 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 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 66,950 $ 65,100 23,950 17,450 23,950 211,350 (60,900) $ 258,800 $ 11,000 4,000 62,000 101,100 80,700 $ 258,800 $ 203,000 100,000 14,150 43,800 $ 45,050 18,900 153,300 (46,750) $ 214,500 $ 21,200 4,600 73,700 66,700 48,300 $ 214,500 Additional Data: a. Bought equipment for cash, $58,050. b. Paid $11,700 on the long-term note payable. c. Issued new shares of stock for $34,400 cash. d. Dividends of $12,650 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. Note: List cash outflows as negative amounts. Answer is not complete. SHARP SCREEN FILMS, INCORPORATED 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 payable Increase in merchandise inventory Decrease in accounts receivable Decrease in wages payable Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock Cash payments for dividends $ 45,050 0 45,050 0 Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock Cash payments for dividends Cash balance, January 1, current year Cash balance, December 31, current year $ 0