XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

		2014				2013
Balance sheet at December 31
Cash	$	35,500			$	29,900
Accounts receivable		37,700				30,200
Merchandise inventory		45,000				39,100
Property and equipment		123,700				101,500
Less: Accumulated depreciation		(32,400)				(26,200)
	$	209,500			$	174,500
Accounts payable	$	38,600			$	29,800
Wages payable		2,400				2,900
Note payable, long-term		46,000				49,300
Contributed capital		91,700				73,900
Retained earnings		30,800				18,600
	$	209,500			$	174,500
Income statement for 2014
Sales	$	130,000
Gain on sale of equipment		2,000
Cost of goods sold		80,000
Other expenses		39,800
Net income	$	12,200

Additional data:

a.	Bought equipment for cash, $33,200.
	Sold equipment with original cost of $11,000, accumulated depreciation of $8,000, for $5,000 cash.
b.	Paid $3,300 on the long-term note payable.
c.	Issued new shares of stock for $17,800 cash.
d.	No dividends were declared or paid.
e.	Other expenses included depreciation, $14,200; wages, $14,100; taxes, $6,800; and other, $4,700.
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, 2014, using the indirect method. (List cash outflows as negative amounts.)

XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
Net income		$12,200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	$14,200
Gain on sale of equipment
Increase in accounts receivable
Increase in merchandise inventory
Increase in accounts payable
Decrease in wages payable
		14,200
Net cash provided by operating activities		26,400
Cash flows from investing activities:
Cash payments to purchase equipment
Cash received from sale of equipment
Net cash used in investing activities		0
Cash flows from financing activities:
Cash payments on long-term note
Cash receipts from issuing stock
Net cash provided by financing activities		0
Net increase in cash during the year
Cash balance, January 1, 2014
Cash balance, December 31, 2014		$0