12-3 Preparing a Statement of Cash Flows (Indirect Method) PA1 vs Suoply Company is developing its annual financial statements at December 31. The statements ae complete except for the statement of cash flows. The completed comparative balance sheets LO 12- income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment 30,000) (25,000 $ 34,000 s 29,000 28,000 38,000 100,000 41,000 121,000 $201.000 $70,000 $170,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 36,000 1,200 38,000 88.600 s 27,000 1.400 44,000 37 20025,000 $170,000 $201,000 Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $120,000 70,000 37,800 S 12.200 Additional Data: a. Bought equipment for cash, $21,000. b Paid $6,000 on the long-term note payable. c Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e Other expenses included depreciation, $5,000: salaries and wages, $20,000; taxes, $6.000 utilities, $6,800. 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: Prepare the statement of cash flows for the current year ended December 31 using the indirect method. Evaluate the statement of cash flows