LEARNING OUTCOME # 5-Part B Prepare the Operating Activities section of the Statement of Cash Flows for Acorn Technologies using the indirect method from the data below. All yellow cells require text or dollars for the solution to be complete. Acorn Technologies Comparative Balance Sheets December 31, 2017 2016 Current assets: 67,200 12,800 50,000 45,000 6,000 Cash and cash equivalents Accounts receivable Inventories Prepaid expenses 54,700 53,400 2,400 Plant assets: 49,200 52,900 S279,800 $ 1 32,000 45,000 190,800 Land Equipment, net Total assets Current liabilities: $35,500 24,000 $ 29,000 15,000 Accounts payable Salaries payable $35,50029,000 15,000 25,000 Accounts payable Salaries payable Other accrued liabilities 24,000 22,100 Long-term liabilities: 35,000 Notes payable 49,000 Stockholders' equity: 60,000 26,800 $279,800$190,800 89,000 60,200 Common stock, no-par Retained earnings Total liabilities and stockholders' equity Acorn Technologies Income Statement Year Ended December 31, 2017 Revenues: 600,000 Sales revenue Expenses: $ 350,000 75,000 12,000 50,000 28,000 30,000 Cost of goods sold Salary expense Depreciation expense-equipment Other operating expense Interest expense Income tax expense Other operating expense Interest expense Income tax expense 50,000 28,000 30,000 Total expenses 545,000 S55,000 Net income Acorn Technologies had no noncash investing and financing transactions during 2017. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Solution: Acorn Technologies Statement of Cash Flows Year Ended December 31, 2017 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Solution: Acorn Technologie:s Statement of Cash Flows Year Ended December 31, 2017 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Sub-total Net Cash flows from operating activities