Sharp Screen Films, Incorporated, 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:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & Current Year & Prior Year $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Balance sheet at December $31\}\backslash \backslash$

$\backslash$hline Cash & $\backslash$$ $73,250$ & $\backslash$$ $63,500\backslash \backslash$

$\backslash$hline Accounts receivable & $15,250$ & $21,350\backslash \backslash$

$\backslash$hline Merchandise inventory & $23,450$ & $18,000\backslash \backslash$

$\backslash$hline Property and equipment & $209,250$ & $160,350\backslash \backslash$

$\backslash$hline Less: Accumulated depreciation & $\backslash ((57,450)\backslash )$ & $(45,750)\backslash \backslash$

$\backslash$hline & $\backslash$$ $263,750$ & $\backslash$$ $217,450\backslash \backslash$

$\backslash$hline Accounts payable & $\backslash$$ $16,500$ & $\backslash$$ $19,000\backslash \backslash$

$\backslash$hline Wages payable & $2,000$ & $2,700\backslash \backslash$

$\backslash$hline Note payable, long$-$term & $56,300$ & $71,000\backslash \backslash$

$\backslash$hline Common stock and additional paid$-$in capital & $103,950$ & $65,900\backslash \backslash$

$\backslash$hline Retained earnings & $85,000$ & $58,850\backslash \backslash$

$\backslash$hline & $\backslash$$ $263,750$ & $\backslash$$ $217,450\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Income statement for current year$\}\backslash \backslash$

$\backslash$hline Sales & $\backslash$$ $205,000$ & $\backslash \backslash$

$\backslash$hline Cost of goods sold & $123,500$ & $\backslash \backslash$

$\backslash$hline Depreciation expense & $11,700$ & $\backslash \backslash$

$\backslash$hline Other expenses & $43,000$ & $\backslash \backslash$

$\backslash$hline Net income & $\backslash$$ $26,800$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Additional Data:

a$.$ Bought equipment for cash, $\backslash (\backslash$$ $48,900\backslash ).$

b$.$ Paid $\backslash (\backslash$$ $14,700\backslash )$ on the long$-$term note payable.

c$.$ Issued new shares of stock for $\backslash (\backslash$$ $38,050\backslash )$ cash.

d$.$ Dividends of $\backslash (\backslash$$ $650\backslash )$ were declared and paid.

e$.$ Other expenses all relate to wages.

$\backslash ($ f $\backslash ).$ Accounts 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.