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 Hoover Industries, Inc. (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) A (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hoover 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.) Hoover 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: Net cash provided by used for) operating activities 0 Balance Sheets Additional information Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets Cash Additional information follows: a. Sold plant asset for $4,500. The original cost of this plant asset was $10,000 and it had $8,500 of accumulated depreciation associated with it. b. Paid $4,000 on the bonds payable; issued $50,000 of new bonds payable. c. Declared and paid cash dividends of $26,900. d. Purchased new investment for $16,000. Paid cash. e. Purchased new equipment for $50,000. Paid cash. $ Accounts receivable Inventory 470,000 $ 72,000 331,000 9,500 293,000 130,000 214,000 6,500 Prepaid insurance Print Done Total current assets $ 882,500 $ 643,500 Income Statement Property, plant, and equipment Less: Accumulated depreciation 620,000 $ (155,000) 88,000 1.435,500 $ 580,000 (111,000) 72,000 1,184,500 Investments Total assets $ Hoover Industries, Inc. Income Statement For the Year Ended December 31, 2017 Liabilities $ 958,000 386,000 $ Current liabilities: Accounts payable inventory purchases) Wages payable Interest payable Income taxes payable 56,000 $ 16,400 1,600 59,670 6,100 $ 572,000 Sales revenues Less: Cost of goods sold Gross profit Less operating expenses: Salaries and wages expense 36,000 17,700 600 10,000 3,800 $ Insurance expense Other accrued expenses payable Total current liablities 194,000 12,500 52,500 82,000 $ 139,770 $ 68,100 Depreciation expense 67,000 21,000 341,000 Long-term liabilities Total liabilities Other operating expenses Total operating expenses Operating income Plus other income and less other expenses: $ 200, 206,770 $ 89,100 $ 231,000 Interest expense $ Stockholders' equity Common stock 5,100 3,000 $ Gain on sale of PP&E 605,000 $ 623,730 605,000 490,400 2.100 Retained earnings Total stockholders' equity $ 1.228,730 $ 1,095,400 Total other income and expenses Income before income taxes Less: Income tax expense $ 228,900 68,670 $ 1,435,500 $ 1,184,500 $ 160,230 Total liabilities and equity Net income Print Done Print Done