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   Statement of Cash FlowsIndirect Method

   The following balances are available for Chrisman Company:

   	December 31
   	2017		2016
   Cash	$8,200		$10,300
   Accounts receivable	20,500		15,400
   Inventory	16,300		27,200
   Prepaid rent	9,200		6,200
   Land	76,900		76,900
   Plant and equipment	410,000		307,500
   Accumulated depreciation	(66,600)		(30,800)
   Totals	$474,500		$412,700
   Accounts payable	$12,300		$10,300
   Income taxes payable	3,100		5,100
   Short-term notes payable	35,900		25,600
   Bonds payable	77,000		103,000
   Common stock	205,000		153,800
   Retained earnings	141,200		114,900
   Totals	$474,500		$412,700

   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 $35,800. Net income was reported at $26,300.

   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
   Cash collected from customersCash dividends paidIssuance of common stockNet incomeNet increase in cashRetained earnings	$- Select -
   Adjustments to reconcile net income to net cash provided by operating activities:
   Acquisition of landAcquisition of plant and equipmentDepreciation expenseIssuance of bonds payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Acquisition of plant and equipmentDecrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Acquisition of plant and equipmentDecrease in inventoryIncrease in income taxes payableIncrease in inventoryIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Acquisition of plant and equipmentDecrease in prepaid rentIncrease in landIncrease in prepaid rentIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Acquisition of plant and equipmentDecrease in accounts payableDecrease in accounts receivableIncrease in accounts payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Acquisition of plant and equipmentDecrease in accounts payableDecrease in income taxes payableIncrease in income taxes payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
   Net cash provided by operating activitiesNet cash used in operating activities	$- Select -
   Cash Flows from Investing Activities
   Acquisition of plant and equipmentDecrease in accounts payableDecrease in income taxes payableIncrease in income taxes payableIssuance of short-term notes payableRetirement of bonds payable	$- Select -
   Cash Flows from Financing Activities
   Acquisition of plant and equipmentDecrease in income taxes payableDecrease in inventoryIncrease in prepaid rentIssuance of bonds payableRetirement of bonds payable	$- Select -
   Acquisition of plant and equipmentDecrease in inventoryDepreciation expenseIncrease in accounts payableIssuance of short-term notes payablePayment of short-term notes payable	- Select -
   Acquisition of plant and equipmentDecrease in inventoryDepreciation expenseIncrease in accounts receivableIssuance of common stockPayment of cash dividends	- Select -
   Net cash provided by financing activitiesNet cash used in financing activities	$- Select -
   Net decrease in cashNet increase in cash	$- Select -
   Cash balance, December 31, 2016	fill in the blank 2ec43403f039038_29
   Cash balance, December 31, 2017	$fill in the blank 2ec43403f039038_30

   2. Based on its statement of cash flows, Chrisman

   did not generate enough cash flow from its operating activities to fund its investing activities.generated more than enough cash flow from its operating activities to fund its investing activities.generated just enough cash flow from its operating activities to equal its investing activities.had a loss for the year and, therefore, it had negative cash flow.

   In addition to operating activities, Chrisman generated cash

   by issuing a note as well as issuing common stock.from investing activities by selling old plant and equipment.by paying dividends to its stockholders.from depreciation.