E12-18 (Static) Preparing a Statemnt of Cash Flows (Indirect Method)

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 Current Year Prior Year 54,000 50 Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation 0 $3.300 700 100 350 50) 5.4.400 350 300 1,000 2.750 $4,400 14.550 $1,100 Wages payable Short-tern note payah te Common stock Retained earnings 1.000 2,450 54,550 Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $34,000 50 30.000 3,650 5 300 Additional Data a. Prepaid expenses relate to rent paid in advance. Other expenses were paid in cash 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. (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 not income to net cash flow from operating activities: Cash flows from investing activities Cash fire from finanrinn artivities 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 deprecia 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 me cash outflows as negative amounts) COMPUTER SERVICE AND REPAIR Statement of Cash Flow For the Year Ended December 31. Current Year Cash flows from operating activities Adjustments to reconcile not income to net cash flow from operating activities: Cash flows from investing activities: 0 Cash flows from financing activities: $ 0