Statement of Cash FlowsIndirect Method

The following balances are available for Chrisman Company:

	December 31
	2017		2016
Cash	$6,400		$8,000
Accounts receivable	16,000		12,000
Inventory	12,700		21,200
Prepaid rent	7,200		4,800
Land	60,000		60,000
Plant and equipment	320,000		240,000
Accumulated depreciation	(52,000)		(24,000)
Totals	$370,300		$322,000
Accounts payable	$9,600		$8,000
Income taxes payable	2,400		4,000
Short-term notes payable	28,000		20,000
Bonds payable	60,000		80,000
Common stock	160,000		120,000
Retained earnings	110,300		90,000
Totals	$370,300		$322,000

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 $28,000. Net income was reported at $20,300.

(IN IMAGE FORM):

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.

Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: December 31 2017 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation 2016 $6,400 $8,000 12,000 21,200 4,800 60,000 320,000 240,000 (52,000) (24,000) $370,300 $322,000 16,000 12,700 7,200 60,000 Totals Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings $9,600 $8,000 4,000 20,000 80,000 160,000 120,000 90,000 $370,300 $322,000 2,400 28,000 60,000 110,300 Totals 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 $28,000. Net income was reported at $20,300