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 Caah $ 35,370 $ 30,450 Accounts Receivable 36,600 28,800 Inventory 42,600 38,800 Equipment 133,000 100,000 Accumulated Depreciation Equipment (21.600) (25,800 Total Assets $215,970 $180,250 Accounts Payable $ 37.600 $ 27,800 Salaries and Wages Payable 970 1,250 Note Payable long-tern) 45,200 $2,000 Common Stock 93,400 73,400 Retained Earnings 38,800 25.000 Total Liabilities and stockholders' Equity $215,970 $180,250 Tecon Statement Sales Revenue cost of Gooda Bold $120,000 74.000 Other Expenses 41.000 Net Income $ 13,000 Additional Data: a. Bought equipment for cash, $25,000 b. Pald $6,800 on the long-term note payable. c Issued new shares of stock for $20,000 cash. d. No dividends were declared or pald. e Other expenses included depreciation, $5,800 salaries and wages, $20,800; taxes, $6,800, utilities, 57,600 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. a. Bought equipment for cash, $25,000. b. Pald $6,800 on the long-term note payable. c. Issued new shares of stock for $20,000 cash. d. No dividends were declared or pald. e Other expenses Included depreciation, $5,800; salaries and wages, $20,800; taxes, $6,800; utilities, $7,600, 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. es 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.) $ 13,000 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Not Income to Net Cash Provided by Operating Activities Depreciation Expense Changes in current assets and current liabilities: Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages Payable $ 5.600 5,800 18,300 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment $ 13,000 For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Changes in current assets and current liabilities: Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages Payable $ 5,800 * ces 5,800 18,800 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment 0 Cash Flows from Financing Activities Cash Payments on Notes Payable (long-term) Cash Receipts from Issuing Stock 0 Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 $ 0
