XS supply company is developing its annual financial statement at December 31st, 2017. The statements are complete except for the statement of cash flow. The completed comparative balance sheet and income statement are summarized:

2017 2016 balance sheet of December 31st cash

$50,720 $34,800 accounts receivable $42,850 $36,100 merchandise inventory $49,750 $43,700 property and equipment $164,000 $138,000

Less: accumulated depreciation ($39,600) ($34,500) $267,720 $218,100 accounts payable $40,050 $30,700 wages payable $1910 $2400 notes payable, long term $40,200 $52,900 contributed capital $108,000 $82,100 retained earnings $77,560 $50,000 $267,720 $218,100 income statement for 2017

sales $165,500

cost of goods sold $95,990

other expenses $41,950

net income $27,560

additional data:

a. body equipment for cash $26,000

b. paid $12,700 for the long term note payable

c. issued new shares for $25,900 cash

d. no dividends were declared or paid

e. other expenses included depreciation, $5100; wages, $22,600; taxes, $7150; other $7100

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.

1. Prepare the statement of cashflows for the year ended December 31st, 2017, using the indirect method.