Sharp Screen Films, Inc., 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 Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 67,050 17,650 24, 250 211,750 (61,100) $259, 600 $ 11,200 4,200 62,100 101,400 80, 700 $259, 600 $ 65,300 24, 250 19,000 153,400 (46,850) $215, 100 $ 21,600 4,700 73,900 66,800 48, 100 $215, 100 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $204,000 101,000 14,250 43,900 $ 44,850 Additional Data: a. Bought equipment for cash, $58,350. b. Paid $11,800 on the long-term note payable. c. Issued new shares of stock for $34,600 cash. d. Dividends of $12,250 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. (List cash outflows as negative amounts.) X Answer is not complete. SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in merchandise inventory Decrease in accounts payable Decrease in wages payable $ 14,250 (1,750 X (5,250 (10,400 (500) (3,650) (3,650) Cash flows from investing activities: Cash payments to purchase fixed assets (3,650 X > (3,650) Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash payments for dividends Cash receipts from issuing stock (11,800