2016 XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 Balance Sheet at December 31 Cash $ 42, 400 $ 31, 100 Accounts Receivable 40, 400 29, 400 Merchandise Inventory 52,100 45,300 Property and Equipment 125,750 110,000 Less: Accumulated Depreciation (35, 450) (27,500) $225, 200 $188,300 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 46,500 1,170 37, 900 98,350 41,280 $ 33,200 1,850 48,200 75, 100 29,950 $225, 200 $188,300 Income Statement for 2017 Sales Cost of Goods Sold Other Expenses $151, 500 87,870 52, 300 Net Income $ 11,330 Additional Data: a. Bought equipment for cash. $15,750. b. Paid $10,300 on the long-term note payable. c.Issued new shares for $23,250 cash. d. No dividends were declared or paid. e Other expenses included depreciation $7.950; wages, $27,000; taxes, $7,000; other, $10,350. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities Cash flows from financing activities Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1, 2017 Cash balance, December 31, 2017