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: Previous Year Current Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment $33,860 $28,850 34,800 27900 40,800 37,900 119,500 99,000 Equipment (29,800) (24,900) $199,160 $168,750 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $35,800 $26,900 1.450 37100 43,000 88,000 72,500 37,000 24,900 1,260 $199,160 $168,750 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $119,000 69,500 37,400 Net Income 12,100 Additional Data: a. Bought equipment for cash, $20,500. b. Paid $5,900 on the long-term note payable c. Issued new shares of stock for $15,500 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,900; Salaries and wages, $19,900; taxes, $5,900; utilities, $6,700. 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 current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLYC Statement of Cash Flows or the Year Ended Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Adivities Sales Revenue Cost of Goods Sold Other Expenses $119,000 69,500 37,400 Net Income $12,100 Additional Data: a. Bought equipment for cash, $20,500. b. Paid $5,900 on the long-term note payable. c. Issued new shares of stock for $15,500 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,900; Salaries and wages, $19,900; taxes, $5,900; utilities, $6,700 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 current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to econcile Net Income to Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Flows from Financing Activities