Audio City, Incorporated, is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 52,680 13,890 29,290 217,000 (55,500) $ 248,180 $ 7,700 2,180 58, 5ee 94,080 85,800 $ 248, 10e $ 58,488 18,500 18,500 147, eee (42,eee) $ 280,400 $ 18,400 1,eee 72,eee 67, eee 42, eee $ 200,400 $191,080 87, e8e 55,500 $ 48,500 Additional Data: a. Bought equipment for cash, $70,000. b. Paid $13.500 on the long-term notes payable. C. Issued new shares of stock for $27.000 cash. d. Dividends of $4.700 were paid in cash. e. Other expenses included depreciation. $13.500; salaries and wages, $18,500: taxes, $23.500. f. Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be Indicated by a minus slgn.) AUDIO CITY INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Balance, December 31 Cash Balance, January 1 Cash Dividends Paid Cash Payments on Notes Payable (long-term) Cash Flows from Financing Activities