eBook Calculator E Print Item Statement of Cash Flows-Indirect Method Peoria Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $1,249,790 Cost of goods sold 701,700 Gross profit $548,090 Operating expenses 149,290 Income before interest and taxes $398,800 Interest expense 24,980 Income before taxes $373,820 Income tax expense 149,528 Net income $224,292 Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets Total assets Accounts payable Other accrued liabilities Income taxes payable Total current liabilities Long-term bank loan payable Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2017 2016 $52,340 $91,710 181,630 128,790 228,030 200,400 14,630 24,460 $476,630 $445,360 $748,440 $598,460 698,140 498,010 (249,900) (201,910) $1,196,680 $894,560 $1,673,310 $1,339,920 $128,540 $149,430 67,930 63,600 90,630 111,310 $287,100 $324,340 $349,880 $300,950 $547,140 $389,230 489,190 325,400 $1,036,330 $714,630 $1,673,310 $1,339,920 Ons as TOOWS: a. Dividends of $60,502 were declared and paid during the year. b. Operating expenses include $47,990 of depreciation c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans. The president has asked you some questions about the year's results. She is very impressed with the profit margin of 17.95% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $47,990. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash Peoria Corp Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Orang Acties Net Income cash provided by operating activities Mustments to recorderet income to Deprecation expense Increase in accounts receivable Increase in inventory Decrease in prepayments Decrease in accounts payable eBook Calculator E Print Item Decrease in Income taxes payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of land Acquisition of plant and equipment Net cash used by investing activities Cash Flows from Financing Activities Additional long-term borrowings Do dol dolgond Issuance of common stock Cash dividends pald Net cash provided by financing activities Net decrease in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017