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statement of cash flows. The completed comparative balance sheets and income statement are summarized: 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 Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 35,230 36,400 42,400 131,500 (31,400) $ 214,130 $ 37,400 1,030 44,300 92,800 38,600 $ 214,130 $ 30,300 28,700 38,700 107,000 (25,700) $179,000 $ 27,700 1,300 51,000 73,300 25,700 $179,000 $127,000 73,500 40,600 $ 12,900 Additional Data: a. Bought equipment for cash, $24,500. b. Paid $6,700 on the long-term note payable. c. Issued new shares of stock for $19,500 cash. d. No dividends were declared or paid. e Other expenses included depreciation, $5,700, salaries and wages, $20,700; taxes, $6,700; utilities, $7,500. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses 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 with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Changes in current assets and current liabilities: Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Decrease in Salaries and Wages Payable 0 0 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash Payments on Notes Payable (long-term) Cash Receipts from Issuing Stock mm Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 $ 0

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