XS Supply Company 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 below: Current Year Prior YearBalance sheet at December 31 Cash$34,300 $28,400 Accounts receivable 35,700 28,900 Merchandise inventory 42,000 38,300 Property and equipment 121,500 100,800 Less: Accumulated depreciation (30,700) (25,300) $202,800 $171,100 Accounts payable$36,700 $27,900 Wages payable 1,400 1,800 Note payable, long-term 44,500 50,800 Common stock and additional paid-in capital 89,600 72,900 Retained earnings 30,600 17,700 $202,800 $171,100 Income statement for current year Sales$123,000 Gain on sale of equipment 2,000 Cost of goods sold 73,000 Other expenses 39,100 Net income$12,900 Additional data:Bought equipment for cash, $30,700. Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $5,000 cash.Paid $6,300 on the long-term note payable.Issued new shares of stock for $16,700 cash.No dividends were declared or paid.Other expenses included depreciation, $12,400; wages, $12,900; taxes, $6,500; and other, $7,300.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 year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.)