Calculator Statement of Cash FlowsIndirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash $9,600 $12,000 Accounts receivable 24,000 18,000 Inventory 19,100 31,900 Prepaid rent 10,800 7,200 Land 90,000 90,000 Plant and equipment 480,000 360,000 Accumulated depreciation (78,000) (36,000) Totals $555,500 $483,100 Accounts payable $14,400 $12,000 Income taxes payable 3,600 6,000 Short-term notes payable 42,000 30,000 Bonds payable 90,000 120,000 Common stock 240,000 180,000 Retained earnings 165,500 135,100 Totals $555,500 $483,100 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 $42,000. Net income was reported at $30,400. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. 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 $ Issuance of common stock Net cash provided by financing activities $ Net decrease in cash $ Cash balance, December 31, 2016 Cash balance, December 31, 2017 $ 2. Based on its statement of cash flows, Chrisman generated just enough cash flow from its operating activities to equal its investing activities. In addition to operating activities, Chrisman generated cash from depreciation.