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 $ $73,250$ $ $63,500$ Accounts receivable $15,25021,350$ Merchandise inventory $23,45018,000$ Property and equipment $209,250160,350$ Less: Accumulated depreciation $(57,450)(45,750)$ $ $263,750$ $ $217,450$ Accounts payable $ $16,500$ $ $19,000$ Wages payable $2,0002,700$ Note payable, long$-$term $56,30071,000$ Common stock and additional paid$-$in capital $103,95065,900$ Retained earnings $85,00058,850$ $ $263,750$ $ $217,450$ Income statement for current year Sales $ $205,000$ Cost of goods sold $123,500$ Depreciation expense $11,700$ Other expenses $43,000$ Net income $ $26,800$ Additional Data: Bought equipment for cash, $$48,900.$ Paid $$14,700$ on the long$-$term note payable. Issued new shares of stock for $$38,050$ cash. Dividends of $$650$ 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.

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Statement of Cash Flows For the Year Ended December 31 Current Year Cash Flows ... View the full answer