XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

Additional Data:

1. Bought equipment for cash, $16,000.
2. Paid $5,000 on the long-term note payable.
3. Issued new shares of stock for $11,000 cash.
4. No dividends were declared or paid.
5. Other expenses included depreciation, $4,000; salaries and wages, $19,000; taxes, $5,000; utilities, $5,800.
6. 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 current year ended December 31 using the indirect method.

Previous Year Current Year Balance Sheet at December 31 $ 31,850 $ 26,750 27,000 Cash Accounts Receivable 33,000 39,000 106,000 (28,000) Inventory Equipment Accumulated Depreciation-Equipment 37,000 90,000 (24,000 $181,850 $156,750 Total ASsets Accounts Payable Salaries and Wages Payable Note Payable (long-term) $34,000 1,050 29,000 $26,000 1,150 34,000 71,600 24,000 Common Stock 82,600 35,200 Retained Earnings $181,850 $156,750 Total Liabilities and Stockholders' Equity Income Statement $110,000 65,000 33,800 Sales Revenue Cost of Goods Sold Other Expenses $ 11,200 Net Income XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities