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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

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 $ 34,240 $ 29,250
Accounts Receivable 35,200 28,100
Inventory 41,200 38,100
Equipment 122,500 101,000
Accumulated DepreciationEquipment (30,200 ) (25,100 )
Total Assets $ 202,940 $ 171,350
Accounts Payable $ 36,200 $ 27,100
Salaries and Wages Payable 1,240 1,450
Note Payable (long-term) 38,900 45,000
Common Stock 89,200 72,700
Retained Earnings 37,400 25,100
Total Liabilities and Stockholders Equity $ 202,940 $ 171,350
Income Statement
Sales Revenue $ 121,000
Cost of Goods Sold 70,500
Other Expenses 38,200
Net Income $ 12,300

Additional Data:

  1. Bought equipment for cash, $21,500.
  2. Paid $6,100 on the long-term note payable.
  3. Issued new shares of stock for $16,500 cash.
  4. No dividends were declared or paid.
  5. Other expenses included depreciation, $5,100; salaries and wages, $20,100; taxes, $6,100; utilities, $6,900.
  6. 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.image text in transcribed

XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities

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