1. Statement of Cash FlowsIndirect Method

   The following balances are available for Chrisman Company:

   	December 31
   	2017		2016
   Cash	$12,500		$15,600
   Accounts receivable	31,300		23,400
   Inventory	24,800		41,400
   Prepaid rent	14,100		9,400
   Land	117,200		117,200
   Plant and equipment	625,000		468,800
   Accumulated depreciation	(101,600)		(46,900)
   Totals	$723,300		$628,900
   Accounts payable	$18,800		$15,600
   Income taxes payable	4,700		7,800
   Short-term notes payable	54,700		39,100
   Bonds payable	117,000		156,000
   Common stock	312,500		234,400
   Retained earnings	215,600		176,000
   Totals	$723,300		$628,900

   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 $54,700. Net income was reported at $39,600.

   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 cash payments, cash outflows, or decreases in cash.

   Chrisman Company
   Statement of Cash Flows
   For the Year Ended December 31, 2017
   Cash Flows from Operating Activities
   	$
   Adjustments to reconcile net income to net cash provided by operating activities:
   	$
   Cash Flows from Investing Activities
   	$
   Cash Flows from Financing Activities
   	$
   	$
   	$
   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

Check My Work

• Previous
• Next