PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5) XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 32,570 33,600 39,600 110,500 (28.600) $187,670 $ 34,600 1,170 31,700 84,400 35,800 $187.670 $ 27,500 27,300 37,300 93,000 (24,300) $160,800 $ 26,300 1,300 37,000 71,900 24,300 $160,800 $113,000 66,500 35,000 $ 11,500