Statement of Cash Flovs-Indirect Method The following balances are available for Chrisman Company: December 31 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation Totals 2017 2016 $7,500 $9,400 18,800 14,100 14,900 24,900 8,400 5,600 70,300 70,300 375,000 281,300 (60,900) (28,100) $434,000 $377,500 Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals $ 11,300 $9,400 2,800 4,700 32,800 23,400 70,000 94,000 187,500 140,600 129,600 105,400 $434,000 $377,500 Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $32,800. Net income was reported at $24,200. 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cas Chrisman Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of plant and equipment Cash Flows from Financing Activities Issuance of bonds payable x Payment of short-term notes payable x Issuance of common stock Net cash provided by financing activities Net decrease in cash O ll11100 0 200000 Cash balance, December 31, 2016 Cash balance, December 31, 2017 2. Based on its statement of cash flows, Chrisman In addition to operating activities, Chrisman generated cash