Sharp Screen Films, Incorporated, is developing its annual financial statements at December 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
Cash
Accounts receivable
Merchandise inventory
Property and equipment
Less: Accumulated depreciation
Accounts payable
Wages payable
Note payable, longterm
Common stock and additional paidin capital
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Depreciation expense
other expenses
Net income
Additional Data:
a Bought equipment for cash, $
b Paid $ on the longterm note payable.
c Issued new shares of stock for $ cash.
d Dividends of $ were declared and paid.
e Other expenses all relate to wages.
f Accounts payable includes only inventory purchases made on credit.
Required:
Prepare the statement of cash flows using the indirect method for the year ended December current year.
Note: List cash outflows as negative amounts.
