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	$ 33,860	$ 28,850
Accounts Receivable	34,800	27,900
Inventory	40,800	37,900
Equipment	119,500	99,000
Accumulated DepreciationEquipment	(29,800)	(24,900)
Total Assets	$ 199,160	$ 168,750
Accounts Payable	$ 35,800	$ 26,900
Salaries and Wages Payable	1,260	1,450
Notes Payable (long-term)	37,100	43,000
Common Stock	88,000	72,500
Retained Earnings	37,000	24,900
Total Liabilities and Stockholders Equity	$ 199,160	$ 168,750
Income Statement
Service Revenue	$ 119,000
Cost of Goods Sold	69,500
Other Expenses	37,400
Net Income	$ 12,100

Additional Data:

Bought equipment for cash, $20,500.

Paid $5,900 on the long-term notes payable.

Issued new shares of stock for $15,500 cash.

No dividends were declared or paid.

Other expenses included depreciation, $4,900; salaries and wages, $19,900; taxes, $5,900; utilities, $6,700.

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.)