I need help in Preparing a statement of cash flow under the indirect method. Your finished

product should have all the information disclosed on a formal statement, including a list of

noncash transactions.

Problem 2: Comparative balance sheets for 2016 and 2017 and an income statement for 2017 are provided below for Frizzle's shop. Balance Sheet As of December 31st COMPARATIVE BALANCE SHEETS ASSETS Cash Accounts receivable Inventory Investment - Trading Securities Fair Value Adjustment Property Plant & Equipment Accumulated depreciation - PPE Goodwill Total assets LIABILITIES Accounts payable Accrued Wages Convertible Bonds Payable Bonds Payable Discount on bonds payable STOCKHOLDERS EQUITY Common stock, $1 par Paid-In capital - Common Stock Retained earnings Total liabilities and stockholders' equity 2017 2016 1550 550 1800 970 70 12000 (4650) 400 12690 1100 1200 1300 970 0 10800 (5400) 600 10570 200 800 0 3400 (10) 4390 550 220 300 1800 (12) 2858 4300 300 3700 12690 3100 100 4512 10570 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 REVENUES Sales revenue Dividend Revenue Unrealized Holding Gain/Loss - Income Total Net Sales EXPENSES Cost of Goods Sold Operating Expenses Interest expense Loss Due to impairment of Goodwill Loss on sale of Machinery TOTAL EXPENSE Income before tax Income tax expense NET INCOME 25,600 110 70 25,780 21,300 4,287 45 200 70 25,902 (122) 0 (122) Additional Information from the 2017 accounting records: a. Harry owns a 10% of Larry Inc. which is labeled as a Trading Security that increased in market value during 2017. Larry gave out $1,100 worth of dividends to all of its owners during 2017. b. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Deprecation was calculated using the straight-line method and exactly 90% of its useful life was used up. c. $1,600 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash. d. Depreciation is included as part of Operating Expense. e. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock. Required: Prepare the statement of cash flow under the indirect method. Your finished product should have all the information disclosed on a formal statement, including a list of noncash transactions. come statement for 2017 Increase (Decrease) 450 (650) 500 0 70 1200 750 (200) 2120 (350) 580 (300) 1600 2 1532 0 1200 200 (812) 3652 rity that increased in s to all of its owners n original cost of method and exactly her Property, Plant, par common stock. method. Your finished ent, including a list of