XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 34,700 36,300 43,000 122,600 (31,600) WA $ 37,500 2,100 45,200 $ 29,200 29,300 38,700 101,100 (25,600) 205,000 172,700 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $ 28,800 2.300 51,000 90,400 73.400 17,200 29,800 $ 205,000 $ 172,700 Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income $ 126,000 2,000 76,000 39,400 12,600 Additional data: a. Bought equipment for cash, $33,500. Sold equipment with original cost of $12,000, accumulated depreciation of $10,000, for $4,000 cash. b. Paid $5,800 on the long-term note payable. c. Issued new shares of stock for $17,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $16,000; wages, $13,800; taxes, $6,200; and other, $3,400. 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 year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year 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