BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete exceptfor the statement of cash flows. The completed comparative balance sheets and income statement are summarized:Balance sheet at December 31CashAccounts receivableMerchandise inventoryProperty and equipmentLess: Accumulated depreciationAccounts payableAccrued wages expenseNote payable, long-termCommon stock and additional paid-in capital.Retained earningsIncome statement for current yearSalesCost of goods soldOther expensesNet incomeAdditional Data:a. Bought equipment for cash, $20,700.b. Paid $6,300 on the long-term note payable.c. Issued new shares of stock for $16,700 cash.Current Year$ 37,30032,70042,000121,500(30,700)$ 202,800$36,7001,40044,50089,60030,600$ 202,800$ 123,00073,00038,100$ 11,900Earthen Van Ended DPrior YearX Answer is not complete.BGP ELECTRICAL SUPPLYStatement of Cash Flows$ 29,40028,90038,300100,800(25,300)d. No dividends were declared or paid.e. Other expenses included depreciation, $5,400; wages, $20,200; taxes, $6,500; other, $6,000.f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes orother expenses, assume that these expenses were fully paid in cash.$ 172,100$ 27,9001,80050,80072,90018,700$ 172,100Required:1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method.Note: List cash outflows as negative amounts.< Prev5 of 7#Next > X Answer is not complete.BGP ELECTRICAL SUPPLYStatement of Cash FlowsFor the Year Ended December 31, Current YearCash flows from operating activities:Net incomeAdjustments to reconcile net income to net cash providedby operating activities:Depreciation expenseIncrease in accounts receivableIncrease in merchandise inventoryIncrease in accounts payableDecrease in accrued wages expenseCash flows from investing activities:Cash payments to purchase property and equipmentNet cash used in investing activitiesCash flows from financing activities:Cash payments on long-term noteCash receipts from issuing stockNet cash provided by financing activitiesNet increase in cash during the yearCash balance, January 1, current yearCash balance, December 31, current year›>00000›>3$5,400✔(3,800)✓(3,700) ✔8,800(400)(20,700)+(6,300)16,700S 11,900S6,30018,200(20,700)10,4007,90029,40037,300< Prev5 of 7

The cash flow statement is the one of the financial statements of the business. The activities of…

BGP Electrical Supply 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: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales. Cost of goods sold Other expenses Current Year Prior Year $ 29,400 $ 37,300 32,700 28,900 42,000 38,300 100,800 121,500 (30,700) (25,300) $ 202,800 $36,700 1,400 44,500 89,600 30,600 $ 202,800 $ 123,000 73,000 38,100 11.000 $ 172,100 $ 27,900 1,800 50,800 72,900 18,700 $ 172,100