Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and

2016 are presented for GibsonGibson Industries, Inc.

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Requirement

Prepare a statement of cash flows for

GibsonGibson

Industries, Inc., for the year ended December 31,2017,

using the indirect method.

Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and for net cash outflows.)

Gibson Industries, Inc.

Statement of Cash Flows (Indirect Method)

For the Year Ended December 31, 2017

Operating Activities:

Adjustments to reconcile net income to cash basis:

Net cash provided by (used for) operating activities

DATA INCOME STATEMENT

Prepare statement of cash flows using the indirect method. The income statement for 2017and the balance sheets for

2017 and 2016 are presented for GibsonGibson Industries, Inc.

LOADING...

(Click the icon to view the income statement.)

LOADING...

(Click the icon to view the balance sheets.)

LOADING...

(Click the icon to view additional information.)

Requirement

Prepare a statement of cash flows for Gibson

Industries, Inc., for the year ended December 31,2017,using the indirect method.

Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and for net cash outflows.)

Gibson Industries, Inc.

Statement of Cash Flows (Indirect Method)

For the Year Ended December 31, 2017

Operating Activities:

Adjustments to reconcile net income to cash basis:

DATA

BALANCE SHEET

Gibson Industries, Inc.

Comparative Balance Sheets

December 31, 2017 and 2016

Assets

2017

2016

Current assets:

Cash

$470,000

$292,000

Accounts receivable

70,000

128,000

Inventory

328,000

220,000

Prepaid insurance

6,500

3,500

Total current assets

$874,500

$643,500

Property, plant, and equipment

$630,000

$570,000

Less: Accumulated depreciation

(155,000)

(107,000)

Investments

89,000

76,000

Total assets

$1,438,500

$1,182,500

Liabilities

Current liabilities:

Accounts payable (inventory purchases)

$60,000

$39,000

Wages payable

16,100

17,000

Interest payable

1,800

500

Income taxes payable

57,390

11,000

Other accrued expenses payable

6,000

3,000

Total current liablities

$141,290

$70,500

Long-term liabilities

61,000

28,000

Total liabilities

$202,290

$98,500

Stockholders' equity

Common stock

$603,000

$603,000

Retained earnings

633,210

481,000

Total stockholders' equity

$1,236,210

$1,084,000

Total liabilities and equity

$1,438,500

$1,182,500

ADDITIONAL INFORMATION

Additional information follows:

a.	Sold plant asset for $ 4 comma 100$4,100. The original cost of this plant asset was $ 10 comma 600$10,600 and it had $ 9 comma 500$9,500 of accumulated depreciation associated with it.
b.	Paid $ 4 comma 000$4,000 on the bonds payable; issued $ 37 comma 000$37,000 of new bonds payable.
c.	Declared and paid cash dividends of $ 2 comma 700$2,700.
d.	Purchased new investment for $ 13 comma 000$13,000. Paid cash.
e.	Purchased new equipment for $ 70 comma 600$70,600. Paid cash.

Net cash provided by (used for) operating activities