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

$

66,650

$

65,900

Accounts receivable

19,150

25,750

Merchandise inventory

25,750

20,300

Property and equipment

213,450

152,500

Less: Accumulated depreciation

(62,700

)

(47,750

)

$

262,300

$

216,700

Accounts payable

$

13,100

$

23,200

Wages payable

5,200

5,700

Note payable, long-term

63,300

76,000

Common stock and additional paid-in capital

103,900

67,500

Retained earnings

76,800

44,300

$

262,300

$

216,700

Income statement for current year

Sales

$

211,000

Cost of goods sold

108,000

Depreciation expense

14,950

Other expenses

44,600

Net income

$

43,450

Additional Data:

a Bought equipment for cash, $60,950.

b Paid $12,700 on the long-term note payable.

c Issued new shares of stock for $36,400 cash.

d Dividends of $10,950 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, current year. (List cash outflows as negative amounts.)