Sharp Screen Films, Incorporated, is developing its annual financial statements st 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: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Mages payable Note payable, long-ter Common stock and additional paid-in capital Current Year Prior Year $ 73,250 $ 63,500 21,350 15,250 23,450 200,250 (57,458) $ 263,750 $ 16,588 2,000 56,380 103,950 18,000 168,350 (45,750) $ 217,450 $ 19,888 2,788 71,888 65,900 Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Date: a. Bought equipment for cash, $48,900. b. Paid $14,700 on the long-term nate payable. c. Issued new shares of stock for $38,050 cash. d. Dividends of $650 were declared and paid. e. Other expenses all relate to wages. 85,000 58,850 $263,750 $217,458 $285,000 123,588 11,788 43,000 $ 26,800 fAccounts payable Includes only Inventory purchases made on credit Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities Depreciation expense Cash payments for dividends Cash flows from investing activities: Cash flows from financing activities: $ 11,000 6,100 $ 17,100 $ 0