Sharp Screen Films, Inc., is developing its annual financial statements at December 31, the 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:

2015 2014
Balance sheet at December 31
Cash 73,250 63,500
Accounts receivable 15,250 21,350
Merchandise inventory 23,450 18,000
Property and equipment 209,250 160,350
Less: Accumulated depreciation (57,450) (45,750)
$263,750 $217,450
Accounts payable 16,500 19,000
Wages payable 2,000 2,700
Note payable, long-term 56,300 71,000
Contributed capital 103,950 65,900
Retained earnings 85,000 58,850
$263,750 $217,450
Income statement for 2015:
Sales $205,000
Cost of goods sold $123,500
Depreciation expense $11,700
Other expense $43,000
Net income $26,800

Additional data:
a. Bought equipment for cash, $48,900.
b. Paid $14,700 on the long-term note payable.
c. Issued new shares of stock for $38,050 cash.
d. Dividends of $650 were declared and paid.
e. Other expenses all relate to wages.
f. Accounts payable includes only inventory purchases made on credit.

Required:
1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year.
2. Based on the cash flow statement, write a short paragraph explaining the major sources and uses of cash by Sharp Screen Films during 2015.