Statement of Cash Flo connect Preparing a Statement of Cash Flows (Indirect Method) (AP12-1) Sharp Screen Films, Inc.,is developing its annual financial statements at he satements are complete except for the statement of cash flows. The PROBLEMS P12-1 summarized as follows: sheets and income statement are s Prior Year Current Year Balance sheet at December 31 73.250 63,500 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation 15,250 23.450 21,350 18,000 160,350 209,250 (57450)(45,750) $263.750 $217-450 s 16,500s 19,000 Accounts payable Wages payable Note payable, long-term Contributed capital Retained 2,000 56.300 103,950 85,000 2,700 71,000 65,900 58,850 5263.750 $217450 $205,000 Cost of goods sold Depreciation expense Oxher expenses Net income 123,500 11,700 43,000 s 26,800 d. N 0 a, Boughtipment for cash, $48,900, b. Paid $14,700 on the long-term note payable. c. Issued new shares of stock for $38,050 cash. d. Dividends of $650 were declared e. Other expenses all relate to and paid. Accounts payable includes only inventory purchases made on credit. . Prepare the statement of cash flows using the indirect method for the year curiend year 2. Based on the cash flow cash by Sharp Screen Films during the statement, write a short paragraph explaining the major P12-2 1,12-2, 12-4,12-6 Statement of Cash Flows (Indirect Method) (AP12-2) current year 8 the major sources and uses statemetts ure shects and income tatemens are