Statement of Cash Flow Presented below are the consolidated financial statements of The Mann Corporation as of year-end 2016 and 2015. THE MANN CORPORATION Consolidated Balance Sheets As of Year-End ($ thousands) 2016 2015 Assets Current assets Cash $400,000 $250,000 Accounts receivable (net) 990,000 760,000 Inventory 710,000 400,000 Prepaid expenses 100,000 100,000 Total current assets 2,200,000 1,510,000 Investments in affiliate companies 100,000 Property and equipment 1,310,000 800,000 Less: Accumulated depreciation (110,000) (80,000) Property & equipment (net) 1,200,000 720,000 Total assets $3,500,000 $2,230,000 Liabilities & Shareholders' Equity Current liabilities Accounts payable $570,000 $500,000 Accrued expenses payable 200,000 220,000 Dividends payable 70,000 Total current liabilities 840,000 720,000 Note payable-due in ten years 500,000 Total liabilities 1,340,000 720,000 Shareholders' equity Common stock, $5 par value 300,000 200,000 Additional paid-in-capital 1,200,000 1,160,000 Retained earnings 660,000 150,000 Total shareholders' equity 2,160,000 1,510,000 Total liabilities & shareholders' equity $3,500,000 $2,230,000 THE MANN CORPORATION Consolidated Income Statement For Year Ended ($ thousands) 2016 2015 Sales $16,800,0000 $12,000,000 Cost of goods sold 14,000,000 10,400,000 Gross margin 2,800,000 1,600,000 Selling & administrative expenses 1,930,000 1,048,000 Depreciation expense 30,000 20,000 Income tax expense 240,000 152,000 Net income $600,000 $380,000 Required Using the above financial data, prepare the statement of cash flow for 2016 using the indirect method. Use a negative sign with answer to indicate a decrease in cash. THE MANN CORPORATION Statement of Cash Flows For Year Ended 2016 X - X $ 0 X Add: X 0 X Accounts receivable OX 0 X Inventory Prepaid expenses Accounts payable O 0 x 0 X X X X 0 x Investments in affiliate companies OX 0 x x 0 x Notes payable 0 x Ox Dividends paid OX X OX 0 X Cash, beginning of year 0 X x $ 0 X