Check my work 3 E12-18 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-2, 12-4, 12-6 Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information. 20 points Current Year Prior Year eBook Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation Hint Print $ 9,075 1,450 850 650 (125) $11,900 $ 500 225 4,000 7,175 $ 11,900 $12,025 650 125 0 0 $12,800 $ 1,850 0 4,000 6,950 $12,800 References Wages payable Short-term note payable Common stock Retained earnings Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $49,000 125 37,500 11, 150 $ 225 Check my work 3 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $650 cash at the beginning of the current year and recorded $125 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $225. 20 points eBook Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) Hint Print References COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Check my work 3 COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: 20 points Adjustments to reconcile net income to net cash provided by operating activities: eBook Hint Print References Cash flows from investing activities: Cash flows from financing activities: Check my work 3 Cash flows from investing activities: 20 points eBook Cash flows from financing activities: Hint Print References