Statement of Cash Flows-Indirect Method Peoria Corp. just completed another successful year as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $1,250,740 Cost of goods sold 698,480 Gross profit $552,260 Operating expenses 151 180 Income before interest and taxes $401,080 INT Interest expense 25,740 Income before taxes $375,340 Income tax expense 150, 136 Net income $225, 204 Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets Total assets Accounts payable Other accrued liabilities Income taxes payable Total current liabilities Long-term bank loan payable Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders equity December 31 2017 2016 $51,150 $89,690 181,510 130,790 231,580 198,660 14,340 25,140 $478,680 $444,280 $750,780 $598,770 698,950 500,750 (248,320) (198,870) $1,201,410 $900,650 $1,680,090 $1,344,930 5131 470 $147,140 68,900 53,970 89 020 108,620 $289 390 $319,730 $350 240 $302,000 $553,170 $398,160 487 290 325,040 $1.040,460 $723) 200 51,680,090 $1,344 930 Other information is as follows: a. Dividends of $62,954 were declared and paid during the year b. Operating expenses include s49,450 of depreciation. c. Land and plant and equipment were acquired for cash and additional stock was issued for cash. Cash also was received from additional E The president has asked you some questions about the yearls result she s very impressed with the profit margin of 18.01% (net income maintain a minimum cash balance of 549 150 Total current liabilities $319,730 $299,390 $350,240 Long-term bank loan payable Common stock Retained earnings Total stockholders equity Total liabilities and stockholders' equity $553) 170 497 290 $302,000 $398,160 325,040 $728,200 $1,344,930 $1,040,460 $1,680,090 Other information is as follows: a. Dividends of $62,954 were declared and paid during the year. b. Operating expenses include $49,450 of depreciation. C. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional b The president has asked you some questions about the year's results. She is very impressed with the profit margin of 18.01% (net income d $49,450 Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate ca Peoria Corp. 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 Ingrease in accounts receivable M Increase in inventory Decrease in prepayments MI Decrease in accounts payable increase in other accrued liabilities Decrease in income taxes payable IM V Net cash ded by operating activities MV ing Activities Acquisition of land [ llllll), D) DI]|| Acquisition of plant and equipment Net cash used by investing activities Cash Flows from Financing Activities Additional long-term borrowings Issuance of common stock IV Cash dividends paid Net cash provided by financing activities Net decrease in cash V Cash balance December 31, 2016 dash balance December 8, 2017 Chol