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:Additional Data:a.Bought equipment for cash, $17,000.b.Paid $5,200 on the long-term note payable.c.Issued new shares of stock for $12,000 cash.d.No dividends were declared or paid.e.

Other expenses included depreciation, $4,200; Salaries and wages, $19,200; taxes, $5,200; utilities, $6,000.

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.

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 Year Previous Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 32,330 27,250 27,200 37,200 92,000 (28,400 24,200) 33,400 39,400 109,000 $185,730 $159,450 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 34,400 1,130 30,800 83,800 35,600 26,200 1,250 36,000 71,800 24,200 $185,730 $159,450 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $112,000 66,000 34,600 Net Income $ 11,400 Additional Data a. Bought equipment for cash, $17,000 b. Paid $5,200 on the long-term note payable c. Issued new shares of stock for $12,000 cash. d. No dividends were declared or paid e. Other expenses included depreciation, $4,200; Salaries and wages, $19,200; taxes, $5,200; utilities $6,000 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 et Incomee Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense ncrease in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages payable Cash Payments to Purchase Equipment 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