7 Sharp Screen Films, Incorporated, 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 as follows: 0.47/0.58 points awarded Scored Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $60,850. b. Paid $16,160 on the long-term note payable. c. Issued new shares of stock for $35,500 cash. d. Dividends of $790 were declared and paid. e. Other expenses all relate to wages. Current Year Prior Year $ 70,250 $ 65,900 18,550 25,350 20,000 25,350 213,150 (62,400) $ 264,900 $ 12,400 3,700 59,640 102,800 86,360 152,300 (47,350) $ 216,200 $ 22,700 6,800 75,800 67,300 43,600 $ 264,900 $ 216,200 $ 209,000 106,000 15,050 44,400 $ 43,550 f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.