BGP Electrical Supply 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: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income Current Year Prior Year $ 39,300 35,900 $ 31,400 31,500 $208,700 $ 40,100 42,000 125,200 (33,700) 40,300 102,500 (27,000) $178,700 $ 31,200 3,400 3,800 47,100 55,600 94,000 74,600 24,100 13,500 $208,700 $178,700 $136,000 86,000 39,400 $ 10,600 Additional Data: a. Bought equipment for cash, $22,700. b. Paid $8,500 on the long-term note payable. c. Issued new shares of stock for $19,400 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $6,700; wages, $20,300; taxes, $6,300; other, $6,100. 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. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) BGP ELECTRICAL SUPPLY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Decrease in accrued wages expense $ 12,100 $ 5,200 (3,800) (4,900) 8,800 (100) 5,200 17,300 Cash flows from investing activities: Cash payments to purchase property and equipment (20,700) Cash flows from financing activities: (20,700) 0 $ 0