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:

Additional Data:

1. Bought equipment for cash, $22,800.
2. Paid $7,100 on the long-term note payable.
3. Issued new shares of stock for $20,000 cash.
4. No dividends were declared or paid.
5. Other expenses included depreciation, $7,400; wages, $20,700; taxes, $6,900; other, $4,700.
6. 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.

Current Year Prior Year 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 $ 39,900 36,800 44,000 126, 100 (34,700) $212,100 $ 40,700 3,700 48,000 94,900 24,800 $212,100 $ 31,900 31,800 41,000 103,300 (27,300) $180,700 $ 32,100 4,100 55,100 74,900 14,500 $180,700 Income statement for current year Sales Cost of goods sold Other expenses Net income $139,000 89,000 39,700 $ 10,300 BGP ELECTRICAL SUPPLY Statement of Cash Flows $ 10,300 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 7,400 (5,000) (3,000) 8,600 Decrease in accrued wages expense (800) 7,200 17,500 Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment (22,800) (22,800) Net cash provided by investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock (7,100) 20,000 12,900 Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $ 0