Sharp Screen Films, Incorporated, is developing its annusl fingncisl ststements st December $31,$ current year. The statements sre

complete except for the ststement of cash flows. The completed comporotive bslance shests ond income statement ore summsrized

os follows:

Adoltional Date:

a$.$ Bought equipment for cssh$,$ $$49,900.$

b$.$ Paid $$14700$ on the longterm nate psysble.

c$.$ lasued new shares of stock for $$38\mathrm{.}050cssh.$

d$.$ Dlvidends of $$650$ were decigred and psid.

e$.$ Other expenses oll re bte to wege:

f Accounts psysble includes only Inventary purchsses mode on cred:

Required:

Prepore the ststement of cssh flows using the clirect method for the year ended December $31,$ current yesr.

Note: Llat cash outflows as negatlive amounts.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:

Current Year Prior Year

Balance sheet at December $31$

Cash $ $73,250$ $ $63,500$

Accounts receivable $15,25021,350$

Merchandise inventory $23,45018,000$

Property and equipment $209,250160,350$

Less: Accumulated depreciation $(57,450)(45,750)$

$ $263,750$ $ $217,450$

Accounts payable $ $16,500$ $ $19,000$

Wages payable $2,0002,700$

Note payable, long$-$term $56,30071,000$

Common stock and additional paid$-$in capital $103,95065,900$

Retained earnings $85,00058,850$

$ $263,750$ $ $217,450$

Income statement for current year

Sales $ $205,000$

Cost of goods sold $123,500$

Depreciation expense $11,700$

Other expenses $43,000$

Net income $ $26,800$

Additional Data:

Bought equipment for cash, $$48,900.$

Paid $$14,700$ on the long$-$term note payable.

Issued new shares of stock for $$38,050$ cash.

Dividends of $$650$ were declared and paid.

Other expenses all relate to wages.

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.

Note: List cash outflows as negative amounts.