BG Wholesalers is developing its annual financial statements at December 31, 2016. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2016 2015 Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 37,000 32,000 41.000 132,000 (41,000) $ 29,000 28,000 38,000 111,000 (36,000) $ 201,000 $170,000 Accounts payable Accrued wage expense Note payable, long-term Contributed capital Retained earnings $ 36,000 1,200 38,000 88,600 37,200 $ 27,000 1,400 44,000 72,600 25,000 $ 201,000 $170,000 Income statement for 2016 Sales Cost of goods sold Other expenses Net income $120,000 70,000 37,800 $ 12,200 Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; wages, $20,000; taxes. $6,000; other, $6,800. 1. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2016, using the indirect method (List cash outflows as negative amounts.) Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other, $6,800. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2016, using the indirect method. (List cash outflows as negative amounts.) BG WHOLESALERS Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 0 0 Cash flows from investing activities: 0 Cash flows from financing activities