Prepare statement of cash flows using the Indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Hanover Industries, Inc. Click the icon to view the income statement.) m (Click the icon to view the balance sheets.) (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hanover Industries, Inc., for the year ended December 31, 2017, using the Indirect method. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and for net cash outflows.) Hanover Industries, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Adjustments to reconcile net income to cash basis: i (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hanover Industries, Inc., for the year ended December 31, 2017, using the indirect method. Net cash provided by (used for) operating activities Investing Activities: Net cash provided by (used for) investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash, beginning of the year Cash, end of the year Choose from any list or enter any number in the input fields and then continue to the next question. Income Statement - X For the Year Ended December 31, 2017 Sales revenues $ 960,000 385,000 od $ 575,000 $ e 194,000 11,500 v Less: Cost of goods sold Gross profit Less operating expenses: Salaries and wages expense Insurance expense Depreciation expense Other operating expenses Total operating expenses Operating income Plus other income and less other expenses: Interest expense 52,400 88,000 345,900 $ 229,100 Het Fin $ 5,300 4,500 Gain on sale of PP&E 805 Total other income and expenses Income before income taxes Net Net Less: Income tax expense $ 228,300 68,490 Net income $ 159,810 Cal Ca Print Done i Balance Sheets Hanover Industries, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash $ 470,000 $ 284,000 Accounts receivable 76,000 Inventory 331,000 9,000 124,000 214,000 4,000 Prepaid insurance Total current assets $ 886,000 $ 626,000 $ 605,000 $ 590,000 Property, plant, and equipment Less: Accumulated depreciation (156,000) 86,000 (114,000) 77,000 Investments Total assets $ 1,421,000 $ 1,179,000 Liabilities Current liabilities: i Balance Sheets ese e in ater mma anoy $ Liabilities Current liabilities: Accounts payable inventory purchases) Wages payable Interest payable Income taxes payable Other accrued expenses payable Total current liablities 53,000 $ 16,400 2,000 40,000 17,600 600 ting 59,490 6,800 10,000 3,200 $ 137,690 $ 71,400 65,000 23,000 ting Long-term liabilities Total liabilities $ 202,690 $ 94,400 Stockholders' equity Common stock $ 609,000 $ 609,310 609,000 475,600 cing Retained earnings Total stockholders' equity $ 1,218,310 $ 1,084,600 Total liabilities and equity $ 1,421,000 $ 1,179,000 mber Print Done i Additional information - X Additional information follows: a. Sold plant asset for $4,600. The original cost of this plant asset was $10,500 and it had $10,400 of accumulated depreciation associated with it. b. Paid $4,500 on the bonds payable; issued $46,500 of new bonds payable. c. Declared and paid cash dividends of $26,100. d. Purchased new investment for $9,000. Paid cash. e. Purchased new equipment for $25,500. Paid cash