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 Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 66,950 19,750 25,950 214,150 (63,400) $ 263, 400 $ 13,500 5,400 64,000 104, 200 76,300 $ 263,400 $ 66,200 25,950 20,800 152,800 (47,950) $217,800 $ 23,800 6,000 76,200 67,800 44,000 $217,800 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $213,000 110,000 15, 450 44,800 $ 42,750 Additional Data: a. Bought equipment for cash, $61,350. b. Paid $12,200 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $10,450 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. SHARP SCREEN FILMS, INC. Statement of Cash Flows $ 42,750 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: Depreciation expense $ Decrease in accounts receivable 15,450 15,450 58,200 Cash flows from investing activities: 0 Cash flows from financing activities: 0 $ 0