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 Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Current Year Previous Year $ 32,810 33,800 39,800 112,000 (28,800) $189,610 $ 27,750 27,400 37,400 1,210 32,600 94,000 (24,400) $162,150 $ 26,400 $ 34,800 1,350 Note Payable (long-term) 38,000 Common Stock 85,000 72,000 Retained Earnings 36,000 24,400 Total Liabilities and Stockholders' Equity $189,610 $162,150 Income Statement Sales Revenue $114,000 Cost of Goods Sold 67,000 Other Expenses Net Income 35,400 $ 11,600 Additional Data: a. Bought equipment for cash, $18,000. b. Paid $5,400 on the long-term note payable. c. Issued new shares of stock for $13,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,400; salaries and wages, $19,400; taxes, $5,400; utilities, $6,200. 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.) Answer is not complete. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Required: 1. Prepare the statement of cash flows for the current year ended December 31 using th should be indicated with a minus sign.) Answer is not complete. 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: $ 11,600 Depreciation Expense $ 4,400 Changes in current assets and current liabilities: Increase in Accounts Receivable (6,400) Increase in Inventory (2,400) Increase in Accounts Payable 8,400 Decrease in Salaries and Wages Payable (140) 3,860 15,460 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment (18,000) (18,000) Cash Flows from Financing Activities: Cash Receipts from Issuing Stock 0 13,000 Cash Payments on Notes Payable (long-term) (5,400) Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 7,600 5,060 27,750 $ 32,810