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. Current Year Prior Year Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation $ 7,920 $10,420 1,300 620 700 110 590 e (110) e $10,400 $11,150 Wages payable $ 470 $ 1,700 Short-term note payable 240 e Common stock 3,400 3,400 Retained earnings 6,290 6,050 $10,400 $11,150 Income Statement for Current Year Service revenue $46,000 Depreciation expense 110 Salaries expense 36,000 Other expenses 9,650 Current Year Prior Year Balance Sheet at December 31 Cash $ 7,920 $10,420 Accounts receivable Prepaid expenses Equipment Accumulated depreciation 1,300 700 620 110 590 0 (110) 0 $10,400 $11,150 Wages payable $ 470 $ 1,700 Short-term note payable 240 e Common stock 3,400 3,400 Retained earnings 6,290 6,050 $10,400 $11,150 Income Statement for Current Year Service revenue $46,000 Depreciation expense 110 Salaries expense 36,000 Other expenses 9,650 Net income $ 240 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $590 cash at the beginning of the current year and recorded $110 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 $240 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.) COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year 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: Cash flows from investing activities: Cash flows from financing activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: 0 $ 0 0