Statement of Cash Flows-Indirect Method The income statement for Pluto Inc. for 2017 is as follows: Sales revenue Cost of goods sold Gross profit Operating expenses Loss before interest and taxes Interest expense Net loss For the Year Ended December 31, 2017 $350,000 150,000 $200,000 250,000 $(50,000) 10,000 $(60,000) Presented here are comparative balance sheets: December 31 2017 2016 Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets Total assets $25,000 30,000 100,000 36,000 $191,000 $300,000 500,000 (90,000) $710.000 $901,000 $50,000 40,000 22,000 $112.000 $450 000 $300,000 39,000 $339,000 $901,000 $10,000 80,000 100,000 35,000 $225,000 $200,000 250,000 (50,000) $400,000 $625,000 $10,000 ON 20,000 12,000 542,000 $100,000 $300,000 183,000 $483,000 $625,000 Accounts payable Other accrued liabilities Interest payable Total current liabilities Long-term bank loan payable Common stock Retained earnings Total stockholders equity Total abilities and stockholdersi equity Other information is as follows a. Dividends of $84,000 were declared and paid during the year b. Operating expenses include 540,000 of depreciation o. Land and plant and equipment were acquired for cash, cash was received from additional bank loans. The president has asked you some questions about the years results. He is disturbed with the net loss of $60,000 for th durind such a terrible velf infra ons Required: Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities sec Pluto Inc. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net loss Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in prepayments Increase in accounts payable Increase in other accrued liabilities Increase in interest payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of land (III) 110 1111111 Acquisition of plant and equipment Net cash used by investing activities Cash Flows from Financing Activities Additional long-term borrowings Cash dividends paid Net cash provided by financing activities Net increase in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017 Feedback