I Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

	2015				2014
Balance sheet at December 31
Cash	$	66,550			$	65,500
Accounts receivable		18,150				24,750
Merchandise inventory		24,750				19,200
Property and equipment		212,250				152,600
Less: Accumulated depreciation		(61,500	)			(47,050	)
	$	260,200			$	215,000
Accounts payable	$	11,800			$	21,900
Wages payable		4,500				5,100
Note payable, long-term		62,300				74,400
Contributed capital		102,000				67,000
Retained earnings		79,600				46,600
	$	260,200			$	215,000
Income statement for 2015
Sales	$	206,000
Cost of goods sold		103,000
Depreciation expense		14,450
Other expenses		44,100
Net income	$	44,450

Additional Data:
a.	Bought equipment for cash, $59,650.
b.	Paid $12,100 on the long-term note payable.
c.	Issued new shares of stock for $35,000 cash.
d.	Dividends of $11,450 were declared and paid.
e.	Other expenses all relate to wages.
f.	Accounts payable includes only inventory purchases made on credit.

Required:

1.

Prepare the statement of cash flows using the indirect method for the year ended December 31, 2015. (List cash outflows as negative amounts.)

SHARP SCREEN FILMS, INC.
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities:
Net income		$44,450
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	$14,450
Increase in merchandise inventory	(5,550)
Decrease in accounts receivable	6,600
Decrease in wages payable	(600)
Decrease in accounts payable
		14,900
Net cash provided by operating activities		59,350
Cash flows from investing activities:
Cash payments to purchase fixed assets
Net cash provided by investing activities
Cash flows from financing activities:
Cash receipts from issuing stock
Cash payments for dividends
Cash payments on long-term note
Net cash provided by financing activities
Net increase in cash during the year
Cash balance, January 1, 2015
Cash balance, December 31, 2015

IIBG Wholesalers is developing its annual financial statements at December 31, 2016. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

	2016				2015
Balance sheet at December 31
Cash	$	38,200			$	30,800
Accounts receivable		34,400				30,000
Merchandise inventory		43,000				39,000
Property and equipment		123,500				101,400
Less: Accumulated depreciation		(32,100)				(26,100)
	$	207,000			$	175,100
Accounts payable	$	38,200			$	29,600
Accrued wage expense		2,300				2,800
Note payable, long-term		45,900				51,000
Contributed capital		91,400				73,800
Retained earnings		29,200				17,900
	$	207,000			$	175,100
Income statement for 2016
Sales	$	129,000
Cost of goods sold		79,000
Other expenses		38,700
Net income	$	11,300

Additional Data:
a.	Bought equipment for cash, $22,100.
b.	Paid $5,100 on the long-term note payable.
c.	Issued new shares of stock for $17,600 cash.
d.	No dividends were declared or paid.
e.	Other expenses included depreciation, $6,000; wages, $20,300; taxes, $6,400; other, $6,700.
f.	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, 2016, using the indirect method. (List cash outflows as negative amounts.)

BG WHOLESALERS
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense
Increase in accounts receivable
Increase in merchandise inventory
Increase in accounts payable
Decrease in accrued expenses
Net cash provided by operating activities
Cash flows from investing activities:
Cash payments to purchase fixed assets
Cash flows from financing activities:
Cash payments on long-term note
Cash receipts from issuing stock
Net cash provided by financing activities
Net increase in cash during the year
Cash balance, January 1, 2016
Cash balance, December 31, 2016