complete P12-2

2. Based on the cash flow statement, write a short paragraph explaining the major sources and uses of cash by Sharp Screen Films during the current year. P12-2 LO12-1,12-2,12-4,12-6 Preparing a Statement of Cash Flows (Indirect Method) (AP12-2) 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: Bought equipment for cash, $21,000. page 661 Paid $6,000 on the long-term note payable. No dividends were declared or paid. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other, $6,800. 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. 2. Based on the cash flow statement, write a short paragraph explaining the major sources and uses of cash during the current year. P12-3 (Chapter Supplement A) Preparing a Statement of Cash Flows (Direct Method) (AP12-3) Use the information concerning Sharp Screen Films, Inc., provided in