Statement of Cash Flows Using a Work Sheet-Indirect Method (Appendix) The following balances are available for Chrsman Company: December 31 2017 2016 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation $8,000 20,000 15,000 9,000 75,000 400,000 (65,000) $462,000 $10,000 15,000 25,000 6,000 75,000 300,000 (30,000) $401,000 Totals Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earings Totals $12,000 3,000 35,000 75,000 200,000 137.000 $10,000 5,000 25,000 100,000 150,000 111,000 $401,000 $462,000 Bonds were retired dunng 2017 at face value, plant and equipment were acquired for cash and commo Required: Totals $462,000 $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. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet. If an amount box does not require an entry, leave it blank. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Balances Cash Inflows (Outflows) Operating Investing Financing Accounts 12/31/17 12/31/16 Changes $ $ $ $ Cash Accounts Receivable Inventory Prepaid Rent Land Plant and Equipment Accumulated Depreciation Accounts Payable Income Taxes Payable Short-Term Notes Payable Bonds Payable Common Stock Retained Earnings Totals Net increase (decrease) in cash Feedback y Check My Work -- --- L Chad My Wort 2. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Us Chrisman Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of plant and equipment Cash Flows from Financing Activities Retirement of bonds payable Issuance of short-term notes payable llllII) I DODIJI! Issuance of common stock Net cash provided by financing activities Net decrease in cash Cash balance, December 31/2017 Cash balance, December 31, 2016 Feedback Cheat My Work