PROBLEMS Problem 12-1 Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation Totals Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals $ 8,000 20,000 15,000 9.000 75,000 400,000 165,000) $462,000 $ 12,000 3,000 35,000 75,000 200,000 137.000 $462,000 $10,000 15.000 25,000 6,000 75.000 300,000 (30,000) $401,000 $ 10,000 5,000 25,000 100,000 150,000 111,000 $401,000 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. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activ- ities section. 2. 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. LOS Problem 12-2 Statement of Cash Flows Using a Work Sheet-Indirect Method (Appendix) Refer to all of the facts in Problem 12-1. 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 Activ ities 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