PA12-3 (Static) Preparing a Statement of Cash Flows (Indirect Method) (LO 12-2, LO 12-3, LO 12-4, LO 12- 5) ces 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. Balance Sheet at December 31 Current Year Previous Year Cash Accounts Receivable $ 34,000 5.29,000 35,000 28,800 Inventory 41,000 38,00 Equipment 121.000 Accumulated Depreciation Equipment 180,000 630,000) (25.000 Total Assets $ 201,00 $ 170,00 Accounts Payable Salaries and Wages Payable $ 35,00 $ 27, eee 1,200 1,400 Notes Payable long-tern) 38,00 Common Stock 44,000 Retained Earnings 88,500 72.600 27. 200 25. Total Liabilities and Stockholders' Equity $ 201,000 $170,000 Income Statement Service Revenue $ 320,000 Cost of Goods Sold 70,00 Other Expenses 37.800 Net Income $ 12.200 Additional Data: Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term notes payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or pald. e Other expenses included depreciation, $5,000, salaries and wages, $20,000, taxes, $6,000; utilities. $6,800. 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 current year ended December 31 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities