P12-1 (Algo) Preparing a Statement of Cash Flows (Indirect Method) L012-1, 12-2, 12-4, 12-6 Sharp Screen Films, Inc., 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 as follows: Current Year Prior Tear Dalance sheet at December 31 Canh 5 66,650 $ 65,000 Accounts receivable 16,950 23,350 Merchandise inventory 23,750 16,00 Property and equipment 211,050 153,200 L: Accumulated depreciation [60, 70D) 146,690) 5257, TDD $214,100 Accounts payable $ 10, 70D $ 21,000 Wages payable 3,900 Note payable, long-teen 61,900 73.400 Common stock and additional paid-in capital 100, BD 66,400 Retained amningu 30,400 48,00 5257, 70D $214,100 Income atatest for current year Sales 5202,0DD Coat of good old 99,000 Depreciation expense 14,050 th 43, BD Set in 5 45,250 Additional Data: a Bought equipment for cash, $57,850 b. Paid $11,500 on the long-term note payable. c.Issued new shares of stock for $34.200 cash. d Dividends of $13,650 were declared and paid. e Other expenses al relate to wages. t 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, current year. (List cash outflows as negative amounts.) SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities Cash flows from financing actes