Graphic Company, Inc., has the following comparative balance sheet as of March 31, 2017 Click the icon to view the comparative balance sheets.) Click the icon to view the transaction data) Requirements 1. Prepare the statement of cash flows for Graphic Company, Inc., for the year ended March 31, 2017, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions 2. Also prepare a supplementary schedule of cash flows from operations using the direct method. Requirement 1. Prepare the statement of cash flows for Graphic Company, Inc., for the year ended March 31, 2017, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts, except short-term notes payable, result from operating transactions Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted.) Graphic Company, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended March 31, 2017 Operating Activities: Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities Investing Activities: Net cash provided by (used for) investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash, beginning of the year Cash, end of the year Schedule of Disclosures Noncash investing and financing activities: Total noncash investing and financing activities Requirement 2. Also prepare a supplementary schedule of cash flows from operations using the direct method. (Use parentheses or a minus sign for numbers to be subtracted.) Graphic Company, Inc. Statement of Cash Flows-Operating Activities Section (Direct Method) For the Year Ended March 31, 2017 Operating Activities: Net cash provided by used for) operating activities A Balance Sheets Graphic Company, Inc. Comparative Balance Sheets March 31, 2017 and 2016 Increase Assets 2017 2016 (Decrease) Current assets: Cash $ Accounts receivable Inventory 55,400 $ 51,600 64,900 4,100 14,900 $ 53,300 59,800 5,300 40,500 (1,700) 5,100 (1,200) Prepaid insurance Total current assets 176,000 133,300 Land (61,500) 1,100 Equipment, net 34,000 95,500 71,500 70,400 9,800 6,900 291,300 $ 306,100 Investments 2,900 $ Total assets Liabilities Current liabilities: Accounts payable Note payable, short-term Income tax payable Salary payable Interest payable 4,900 $ 43,200 13,800 9,400 8,200 2,600 3,500 48,500 15,100 12,400 7,000 3,700 1,400 (5,300) (1,300) (3,000) 1,200 (1,100) Accrued liabilities Total current liabilities 82,100 90,200 48,300 93,700 (45,400) Long-term liabilities Total liabilities 130,400 183,900 7,500 Stockholders' equity Common stock Retained earnings Total stockholders' equity 69,400 61,900 91,500 60,300 160,900 $ 122,200 31,200 $ $ 291,300 $ 306,100 Total liabilities and equity i Transactions Selected transaction data for the year ended March 31, 2017, include the following: a. Net income, $76,800 b. Paid long-term note payable with cash, $59,600 c. Cash payments to employees, $42,700 d. Loss on sale of land, $9,200 e. Acquired equipment by issuing long-term note payable, $14,200 f. Cash payments to suppliers, $145,600 g. Cash paid for interest, $3,000 h. Depreciation expense on equipment, $13,100 i. Paid short-term note payable by issuing common stock, $5,300 j. Paid cash dividends, $45,600 k. Received cash for issuance of common stock, $2,200 1. Cash received from customers, $295,200 m. Cash paid for income taxes, $11,600 n. Sold land for cash, $52,300 o. Interest received (in cash), $1,800 p. Purchased long-term investment for cash, $2,900