Additional Data:

a$.$ Bought equipment for cash, $$48,900.$

b$.$ Paid $$14,700$ on the long$-$term note payable.

c$.$ Issued new shares of stock for $$38,050$ cash.

d$.$ Dividends of $$650$ were declared and paid.

e$.$ Other expenses all relate to wages.

f$.$ Accounts payable includes only inventory purchases made on credit.

Required:

Prepare the statement of cash flows using the indirect method for the year ended December $31,$ current year.

Note: List cash outflows as negative amounts.

Answer is complete but not entirely correct.

$\backslash$table$[[$SHARP SCREEN FILMIS, INCORPORATED$],[$Statement of Cash Flows$],[$For the Year Ended December $31,$ Current Year$],[$Cash flows from operating activities:$],[$Net income,$0,,$$$26,800$

P$12-1($Static$)$ Preparing a Statement of Cash Flows $($Indirect Method$)$ LO$12-1,12-2,12-4,12-6$

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:

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, $$48,900.$

b$.$ Paid $$14,700$ on the long$-$term note payable.

c$.$ Issued new shares of stock for $$38,050$ cash.

d$.$ Dividends of $$650$ were declared and paid.

e$.$ Other expenses all relate to wages.

$f$ Accounts payable includes only inventory purchases made on credit.

Required:

Prepare the statement of cash flows using the indirect method for the year ended December $31,$ current year.

Note: List cash outflows as negative amounts.

$\backslash$table$[[$SHARP SCREEN FILMS, INCORPORATED$],[$Statement of Cash Flows$],[$For the Year Ended December $31,$ Current Year$],[$Cash flows from operating activities:$],[$Net income,,$$,26,800.$