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:

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	34,960		$	30,000
Accounts Receivable		35,800			28,400
Inventory		41,800			38,400
Equipment		127,000			104,000
Accumulated DepreciationEquipment		(30,800	)		(25,400	)
Total Assets	$	208,760		$	175,400
Accounts Payable	$	36,800		$	27,400
Salaries and Wages Payable		1,360			1,600
Note Payable (long-term)		41,600			48,000
Common Stock		91,000			73,000
Retained Earnings		38,000			25,400
Total Liabilities and Stockholders Equity	$	208,760		$	175,400
Income Statement
Sales Revenue	$	124,000
Cost of Goods Sold		72,000
Other Expenses		39,400
Net Income	$	12,600

Additional Data:

1. Bought equipment for cash, $23,000.
2. Paid $6,400 on the long-term note payable.
3. Issued new shares of stock for $18,000 cash.
4. No dividends were declared or paid.
5. Other expenses included depreciation, $5,400; salaries and wages, $20,400; taxes, $6,400; utilities, $7,200.
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. (Amounts to be deducted should be indicated with a minus sign.)

$ 12,600 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense Changes in current assets and current liabilities: Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages Payable 12.600 Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Payments to Purchase Equipment Cash Flows from Financing Activities: Cash Payments on Notes Payable (long-term) Cash Receipts from Issuing Stock Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1