XS Supply Company 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:
Balance
Sheet at
Decembe
r 31
Cash
Accou
nts
Receivabl
e
Invent
ory

Current Year

Previous Year

Equipmen
t
Accum
ulated
Depreciati
on
Equipmen
t

Accou
nts
Payable
Salarie
s and
Wages
Payable
Note
Payable
(longterm)
Comm
on Stock
Retain
ed
Earnings

Income
Statement
Sales
Revenue
Cost of
Goods

33,580

28,550

34,400

27,700

40,400

37,700

116,500

97,000

(29,400)

(24,700)

195,480

35,400

$ 166,250

26,700

1,380

1,550

35,300

41,000

86,800

72,300

36,600

24,700

195,480

$ 166,250

117,000
68,500

Sold
Other
Expenses
Net
Income

36,600
$

11,900

Additional Data:
a. Bought equipment for cash, $19,500.
b. Paid $5,700 on the long-term note payable.
c. Issued new shares of stock for $14,500 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $4,700; Salaries and wages, $19,700; taxes, $5,700; utilities,
$6,500.
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.

XS Supply Company 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:
Balance
Sheet at
Decembe
r 31
Cash
Accou

Current Year

Previous Year

32,090
33,200

27,000
27,100

nts
Receivabl
e
Invent
ory
Equipmen
t
Accum
ulated
Depreciati
on
Equipmen
t

Accou
nts
Payable
Salarie
s and
Wages
Payable
Note
Payable
(longterm)
Comm
on Stock
Retain
ed
Earnings

Income
Statement
Sales
Revenue
Cost of
Goods
Sold
Other
Expenses
Net
Income

Additional Data:

39,200

37,100

107,500

91,000

(28,200)

(24,100)

183,790

34,200

$ 158,100

26,100

1,090

1,200

29,900

35,000

83,200

71,700

35,400

24,100

183,790

$ 158,100

111,000
65,500
34,200

11,300

a. Bought equipment for cash, $16,500.

b. Paid $5,100 on the long-term note payable.
c. Issued new shares of stock for $11,500 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $4,100; Salaries and wages, $19,100; taxes, $5,100; utilities,
$5,900.
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.)