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of cash flows (indirect method) 05,6X CHECK FIGURE: Net cash inflow from operating activities = $168.168 MED Supplies Inc., a software retailer, recently completed its 2017 operations. The following information is available: MED Supplies Inc. Income Statement For Year Ended December 31, 2017 MED Supplies Inc Comparative Balance Sheet Information $1,365,840 624,960 $ 740,880 Sales Cost of goods sold Gross profit.......... Operating expenses: Depreciation expense Other expenses. Total operating expenses Profit from operations Income taxes. Profit $ 39,648 402,696 Cash... Accounts receivable Merchandise inventory Equipment.. Accumulated depreciation Accounts payable Income taxes payable. Common shares Retained earnings.. December 31 2017 2018 $120.792 $71.232 43,512 52.080 392.784 313.320 236.208 171.360 108,192 68.544 86.184 79.800 10,080 15.120 463.680 369,600 125.160 74.928 442,344 $ 298,536 100,464 $ 198,072 Additional information regarding MED Supplies Inc.'s activities during 2017: 1. Equipment was purchased for $64,848 cash. 2. Issued 3,360 common shares for cash at $28 per share, 3. Declared and paid $147,840 of cash dividends during the year. CHAPTER 16 Reporting and Analyzing Cash Flows Required Prepare a statement of cash flows for 2017 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Analysis Component: The net increase in cash during 2017 for MED Supplies Inc. was $49,560. Briefly explain what caused this change using the statement of cash flows prepared above. flow (direct method) LO7