Exercise 1 Constructing the statement of cash flows:

You are the controller of the Frank Underwood Corporation. On January 1, 2018, after the 2017 fiscal year has ended, you have the following information in front of you:

	December 31,
Assets:	2017	2016
Cash	$4,947	$2,490
Accounts receivable	620	540
Inventories	10,310	9,450
Prepaid expenses	460	325
PP&E, net	14,000	13,200
Intangible assets, net	4,700	4,900
TOTAL ASSETS:	35,037	30,905
Liabilities:
Accounts payable	460	640
Accrued liabilities	1,100	780
Unearned revenue	130	250
Long-term debt	7,300	8,100
TOTAL LIABILITIES:	8,990	9,770
Shareholders Equity:
Common stock	7	5
Additional paid-in capital	6,400	4,350
Retained earnings	19,640	16,780
TOTAL SHAREHOLDERS EQUITY	26,047	21,135
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY:	35,037	30,905

During the fiscal year 2017, the following events occurred:

1. The company issued long-term debt in the amount of$1,200. Some of the debt at the beginning of the year was paidin 2017.
2. Depreciation expense was $2,000.
3. The company purchased new PP&E, in cash. The company did not sell any of its PP&E in 2017. There was no impairment of PP&E in 2017.
4. The company issued 20 shares with a par value of $0.1 per share. In return, the company received a total of $2,052 in cash.
5. The company declared and paid a $560 dividend during 2017.
6. Net income in 2017 was $________ (use the information provided to find out).

Required:

Prepare the statement of cash flows for the year ended December 31, 2017,using the indirect method. Specifically:

1. Fill out the worksheet below.
2. Compose a properlyformatted cash flow statement.