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:

Current Year Prior Year

Balance sheet at December $31$

Cash $ $66,550$ $ $65,500$

Accounts receivable $18,15024,750$

Merchandise inventory $24,75019,200$

Property and equipment $212,250152,600$

Less: Accumulated depreciation $(61,500)(47,050)$

$ $260,200$ $ $215,000$

Accounts payable $ $11,800$ $ $21,900$

Wages payable $4,5005,100$

Note payable, long$-$term $62,30074,400$

Common stock and additional paid$-$in capital $102,00067,000$

Retained earnings $79,60046,600$

$ $260,200$ $ $215,000$

Income statement for current year

Sales $ $206,000$

Cost of goods sold $103,000$

Depreciation expense $14,450$

Other expenses $44,100$

Net income $ $44,450$

Additional Data:

Bought equipment for cash, $$59,650.$

Paid $$12,100$ on the long$-$term note payable.

Issued new shares of stock for $$35,000$ cash.

Dividends of $$11,450$ were declared and paid.

Other expenses all relate to wages.

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.

Note: List cash outflows as negative amounts.SHARP SCREEN FILMS, INCORPORATED

Statement of Cash Flows

For the Year Ended December $31,$ Current Year