Preparing a Statement of Cash Flows (Indirect Method) The following financial statements were issued by Hoskins Corporation for the fiscal year ended December 31, 2018. All amounts are in millions of U.S. dollars. Balance Sheets December 31, 2017 December 31, 2018 Assets Cash $300 $550 Accounts Receivable 600 1,500 Inventory 400 500 Prepaid Expenses 400 150 Current Assets 1,700 2,700 Property, Plant and Equipment at Cost 6,200 6,100 Less Accumulated Depreciation (2,100) (1,750) Property, Plant and Equipment, Net 4,100 4,350 Total Assets $5,800 $7,050 Liabilities and Shareholders' Equity Accounts Payable $400 $800 Income Tax Payable 200 100 Short-Term Debt 1,200 2,700 Current Liabilities 1,800 3,600 Long-Term Debt 1,000 Total Liabilities 2,800 3,600 Contributed Capital 800 800 Retained Earnings 2,200 2,650 Total Shareholders' Equity 3,000 3,450 Total Liabilities and Shareholders' Equity $5,800 $7,050 Income Statement Sales Revenues Cost of Goods Sald Gross Profit Selling General and Administrative Expenses Depreciation Expense Operating Income Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income Fiscal year 2018 $6,500 3,400 3,100 1,450 350 1,300 350 950 250 5700 Additional information: 1. During fiscal year 2018, Hoskins Corporation accuired new equipment for $1,200 in cash. In addition, the company disposed of used equipment that had original cost of $1,300 and accumulated depreciation of $700, receiving $600 in cash from the buyer. 2. During fiscal year 2018, Huskins Corporation arranged short-term bank financing and burrowed $1,500, using a portion of the cash to repay all of its outstanding long-term debt. 3. During liscal year 2018, Huskins Corporation engaged in no transactions involving its common stock, though it did declare and pay in cash a common stock dividend of $250. Prepare a statement of cash flows (all three sections) for Hoskins Corporation's fiscal year 2018, using the indirect method for the cash from operations section, Note: Use a negative sign with your answer to indicate a reduction in cash/cash outflow. HOSKINS CORPORATION STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2018 Cashflows fram Operations: Adjustments: Change in accounts receivable Change in inventory Change in prepaid expenses Change in accounts payable S Cash Flows from Operating Activities Cash Flows from Investing: Proceeds from disposal of equipment Cash Flows from Investing Activities Cash Flows frorr Financing Inreise in short term door Decrease in long term celit Cash Flows from Financing Activities Nel change in cash Ending cash balance