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 $ 33,720 34,600 $ 28,700 27,800 40,600 118,000 37,800 (29,600) $197,320 $ 35,600 98,000 (24,800) $167,500 $ 26,800 1,320 1,500 Note Payable (long-term) 36,200 42,000 Common Stock 87,400 72,400 Retained Earnings 36,800 24,800 Total Liabilities and Stockholders' Equity $197,320 $167,500 Income Statement Sales Revenue $118,000 Cost of Goods Sold 69,000 Other Expenses Net Income 37,000 $ 12,000 Additional Data: a. Bought equipment for cash, $20,000. b. Paid $5,800 on the long-term note payable. c. Issued new shares of stock for $15,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,800; salaries and wages, $19,800; taxes, $5,800; utilities, $6,600. 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.)