Sharp Screen Films, Inc., 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 $ 70,250 $ 65,900
Accounts receivable 18,550 25,350
Merchandise inventory 25,350 20,000
Property and equipment 213,150 152,300
Less:
Accumulated depreciation (62,400 ) (47,350 )
$ 264,900 $ 216,200
Accounts payable $ 12,400 $ 22,700
Wages payable 3,700 6,800
Note payable, long-term 59,640 75,800
Common stock and additional paid-in capital 102,800 67,300
Retained earnings 86,360 43,600
$ 264,900 $ 216,200
Income statement for current year
Sales $ 209,000
Cost of goods sold 106,000
Depreciation expense 15,050
Other expenses 44,400
Net income $ 43,550
Additional Data:
Bought equipment for cash, $60,850.
Paid $16,160 on the long-term note payable.
Issued new shares of stock for $35,500 cash.
Dividends of $790 were declared and paid.
Other expenses all relate to wages.
Accounts payable includes only inventory purchases made on credit.
Prepare the statement of cash flow using indirect method for the year ended December 31, current year.
