Statement of Cash FlowsIndirect Method

The following balances are available for Chrisman Company:

	December 31
	2016		2015
Cash	$8,000		$10,000
Accounts receivable	20,000		15,000
Inventory	15,000		25,000
Prepaid rent	9,000		6,000
Land	75,000		75,000
Plant and equipment	400,000		300,000
Accumulated depreciation	(65,000)		(30,000)
Totals	$462,000		$401,000
Accounts payable	$12,000		$10,000
Income taxes payable	3,000		5,000
Short-term notes payable	35,000		25,000
Bonds payable	75,000		100,000
Common stock	200,000		150,000
Retained earnings	137,000		111,000
Totals	$462,000		$401,000

Bonds were retired during 2016 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $35,000. Net income was reported at $26,000.

Required:

1. Prepare a statement of cash flows for 2016 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 in December 31, 2016

Cash Flows from Operating Activities

______________ $

Adjustments to reconcile net income to net cash provided by operating activities:

______________ $

______________ $

______________ $

______________ $

______________ $

______________ $ (net cash Provided or Used by operation activities)

Cash Flows from Investing Activities

______________ $

Cash Flows from Financing Activities

______________ $

______________ $

______________ $

______________ $ (net cash provided by finance activities or net cash used in finance activities)

______________ $ (net Increase or Decrease in cash)

Cash balance, December 31, 2015 $

Cash balance, December 31, 2016 $

2. Based on the statement of cash flows, was Chrisman cash flow enough for his investment activities? If not explain?