850 700 Exercise 2 - Constructing the statement of cash flows #2: You are the controller of the Claire Underwood Corporation. On December 31, 2017, the firm's fiscal year end, you have the following information in front of you: December 31, Assets: 2017 2016 Cash S21.100 $15.600 Accounts receivable 1,000 Inventories 900 PP&E, net 20,000 18,000 TOTAL ASSETS: 42,800 35,350 Liabilities: Accounts payable 800 350 Long-term debt 13,000 10,000 TOTAL LIABILITIES: 13,800 10,350 Shareholders' Equity: Common stock 55 50 Additional paid-in capital 5,545 4,550 Retained earnings 23,400 20,400 TOTAL SHAREHOLDERS' EQUITY 29,000 25,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY: 42,800 35,350 During the fiscal year 2017, the following events occurred: 1. The company paid off $2,000 of its long-term debt during the year. In addition, the company borrowed $ , payable in 3 years. 2. Depreciation expense was $3,000. 3. The company purchased new PP&E at the amount of $8,100, in cash. 4. The company sold PP&E for $2,300 in cash. The net book value of PP&E sold was $1,600. (hint: was there a gain or loss on the sale?) 5. The company recorded an impairment charge of $ on its PP&E (hint: ask yourself: impairment loss impacts the firm's net income but is it a cash expense?). 6. The company issued 500 shares with a par value of $0.01 (per share). The share price was $2 per share and was paid to the company in cash. 7. Net income in 2017 was $3,500. 8. The company declared and paid dividends during 2017 at the amount of $ in cash. Required: 1. Find and record the missing values. 2. Compose a properly formatted cash flow statement