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	$ 33,440	$ 28,400
Accounts Receivable	34,200	27,600
Inventory	40,200	37,600
Equipment	115,000	96,000
Accumulated DepreciationEquipment	(29,200)	(24,600)
Total Assets	$ 193,640	$ 165,000
Accounts Payable	$ 35,200	$ 26,600
Salaries and Wages Payable	1,440	1,600
Notes Payable (long-term)	34,400	40,000
Common Stock	86,200	72,200
Retained Earnings	36,400	24,600
Total Liabilities and Stockholders Equity	$ 193,640	$ 165,000
Income Statement
Sales Revenue	$ 116,000
Cost of Goods Sold	68,000
Other Expenses	36,200
Net Income	$ 11,800

Additional Data:

Bought equipment for cash, $19,000.

Paid $5,600 on the long-term notes payable.

Issued new shares of stock for $14,000 cash.

No dividends were declared or paid.

Other expenses included depreciation, $4,600; salaries and wages, $19,600; taxes, $5,600; utilities, $6,400.

Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume 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.