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 Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment $ 35,090 $ 30,150 28,600 38,600 106,000 (31,200) (25,600) 36,200 42,200 130,000 $212,290 $177,750 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 37,200 $ 27,600 1,350 50,000 73,200 25,600 1,090 43,400 92,200 38,400 $212,290 $177,750 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $126,000 73,000 40,200 Net Income $12,800 Additional Data: a. Bought equipment for cash, $24,000 b. Paid $6,600 on the long-term note payable. c. Issued new shares of stock for $19,000 cash d. No dividends were declared or paid e. Other expenses included depreciation, $5,600; Salaries and wages, $20,600; taxes, $6,600; utilities, $7,400 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. 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.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities et Income $12,800 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages payable Net Cash Provided by Operating Activities 12,800 Cash Flows from Investing Activities Cash Payments to Purchase Equipment 0 Cash Flows from Financing Activities 0 Cash Balance, December 31 0