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 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 32,810 33,800 39,800 112,000 (28,800) $ 189,610 $ 34,800 1,210 32,600 85,000 36,000 $189,610 $ 27,750 27,400 37,400 94,000 (24,400) $ 162,150 $ 26,400 1,350 38,000 72,000 24,400 $ 162,150 $ 114,000 67,000 35,400 $ 11,600 Additional Data: a. Bought equipment for cash, $18,000. b. Paid $5,400 on the long-term note payable. c. Issued new shares of stock for $13,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $4,400; salaries and wages, $19,400; taxes, $5,400; utilities, $6,200. 1. 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. (Amounts to be deducted should be indicated with a minus sign.) $ 11,600 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Incotre 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 4,400 4,400 16,000 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment Cash Receipts from Issuing Stock 0 Cash Flows from Financing Activities: Cash payments on Notes Payable (long-term) Cash Receipts from Issuing Stock 0 Net Increase in Cash during the Year Cash Balance, December 31 0