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: Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings Income Statement (Current year) Sales Cost of Goods Sold Other Expenses Net Income Current Year Prior Year $ 43,485 $ 31,200 40,500 29,700 46,150 43,100 145,750 124,000 (38,100) (31,000) $237,785 $197,000 $ 42,700 $ 32,900 1,305 1,800 42,900 53,400 99,000 78,600 51,880 30,300 $237,785 $197,000 $164,000 95,120 47,300 $ 21,580 Additional Data: a. Bought equipment for cash, $21,750. b. Paid $10,500 on the long-term note payable. c. Issued new shares for $20,400 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,100; wages, $24,100; taxes, $8,600; other, $7,500. 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 using the Indirect method. (Amounts to be deducted should be indicated by a minus sign.) 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: 0 0 Cash flows from investing activities: 0