E12-18 (Static) 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. Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation 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 Current Year Prior Year $ 3,300 700 $ 4,000 500 100 50 350 (58) 8 $ 4,400 $ 4,550 $ 350 300 $ 1,100 e 1,000 2,750 1,000 2,450 $ 4,400 $ 4,550 $ 34,000 50 30,000 3,650 $ 300 Additional Data. a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 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 $300. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the Indirect method. Note: List cash outflows as negative amounts. 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 flow from operating activities: Cash flows from investing activities: Cash flows from financing activities: 0 0 0 $ 0