Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company The comparative balance sheet and income statement for Chapman as of May 31, 2017, are as follows The company is preparing its statement of cash flows CHAPMAN COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2017 2016 Current assets Cash $28,250 $20,000 Accounts receivable 75,000 58,000 Inventory 220,000 250,000 Prepaid expenses 9,000 7,000 Total current assets 332,250 335,000 Plant assets Plant assets 600,000 502,000 Less Accumulated depreciationplant assets 150,000 125,000 Net plant assets 450,000 377,000 Total assets $782,250 $712,000 Current liabilities Accounts payable $123,000 $115,000 Salaries and wages payable 47,250 72,000 Interest payable 27,000 25,000 Total current liabilities 197,250 212,000 Long term debt Bonds payable 70,000 100,000 Total liabilities 267,250 312,000 Stockholders equity Common stock, $10 par 370,000 280,000 Retained earnings 145,000 120,000 Total stockholders equity 515,000 400,000 Total liabilities and stockholders equity $782,250 $712,000 CHAPMAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2017 Sales revenue $1,255,250 Cost of goods sold 722,000 Gross profit 533,250 Expenses Salaries and wages expense 252,100 Interest expense 75,000 Depreciation expense 25,000 Other expenses 8,150 Total expenses 360,250 Operating income 173,000 Income tax expense 43,000 Net income $130,000 The following is additional information concerning Chapmans transactions during the year ended May 31, 2017 1 All sales during the year were made on account 2 All merchandise was purchased on account, comprising the total accounts payable account 3 Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock 4 The other expenses are related to prepaid items 5 All income taxes incurred during the year were paid during the year 6 In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value 7 Cash dividends of $105,000 were declared and paid at the end of the fiscal year Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2017, using the direct method (A reconciliation of net income to net cash provided is not required ) (Show amounts in the investing and financing sections that decrease cash flow with either a sign e g 15,000 or in parenthesis e g (15,000) ) Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2017 ( Show amounts that decrease cash flow with either a sign e g 15,000 or in parenthesis e g (15,000) )

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Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement

Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2017, are as follows. The company is preparing its statement of cash flows.

CHAPMAN COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31
	2017	2016
Current assets
Cash	$28,250	$20,000
Accounts receivable	75,000	58,000
Inventory	220,000	250,000
Prepaid expenses	9,000	7,000
Total current assets	332,250	335,000

Plant assets
Plant assets	600,000	502,000
Less: Accumulated depreciationplant assets	150,000	125,000
Net plant assets	450,000	377,000
Total assets	$782,250	$712,000

Current liabilities
Accounts payable	$123,000	$115,000
Salaries and wages payable	47,250	72,000
Interest payable	27,000	25,000
Total current liabilities	197,250	212,000

Long-term debt
Bonds payable	70,000	100,000
Total liabilities	267,250	312,000

Stockholders equity
Common stock, $10 par	370,000	280,000
Retained earnings	145,000	120,000
Total stockholders equity	515,000	400,000
Total liabilities and stockholders equity	$782,250	$712,000

CHAPMAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2017
Sales revenue		$1,255,250
Cost of goods sold		722,000
Gross profit		533,250

Expenses
Salaries and wages expense		252,100
Interest expense		75,000
Depreciation expense		25,000
Other expenses		8,150
Total expenses		360,250
Operating income		173,000
Income tax expense		43,000
Net income		$130,000

The following is additional information concerning Chapmans transactions during the year ended May 31, 2017.

1.		All sales during the year were made on account.
2.		All merchandise was purchased on account, comprising the total accounts payable account.
3.		Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock.
4.		The other expenses are related to prepaid items.
5.		All income taxes incurred during the year were paid during the year.
6.		In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value.
7.		Cash dividends of $105,000 were declared and paid at the end of the fiscal year.

Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2017, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)