STATEMENT OF CASH FLOWS

Karzai Company is developing its annual Statement at December 31, current year. The statement are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

Additional Data:

a. Bought equipment for cash, $57,750

b. Paid $11,100 on the long-term note payable

c. Issued new shares of stock for $33,900 cash

d. Dividends of $14,250 were declared and paid.

e. Other expenses all relate to wages.

f. Accounts payable includes only inventory purchases made on credit

Required:

Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts)

Current Year Prior Year Balance sheet at December 31 64,700 23,550 $ 66,350 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation(60,600) 16,550 23,550 210,850 18,700 153,100 (46,350)- Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $256,700 $ 10,500 3,700 61,700 100,400 80,400 $256,700 $213,700 $ 20,800 4,100 72,800 66,500 49,500 $213,700- Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $201,000 98,000 14,250 43,600 $ 45,150