Refer to all of the facts in Problem 12-1.

Problem 12-1

The following balances are available for Chrisman Company:

Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $35,000. Net income was reported at $26,000.
Required
1. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet.
2. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section.
3. Did Chrisman generate sufficient cash from operations to pay for its investing activities?
How did it generate cash other than from operations? Explain your answers.

Transcribed Image Text:

Accounts receivable 1 Plant and equipment Accumulated depreciation Accounts payable Income taxes payable Short-tem notes payable Bonds payable Common stock Retained eamings $ 12,000 10,000 $462,000 $401,000