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Statement of Cash FlowsIndirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash $8,600 $10,800 Accounts receivable 21,500 16,100 Inventory
Statement of Cash FlowsIndirect Method
The following balances are available for Chrisman Company:
December 31 | |||
2017 | 2016 | ||
Cash | $8,600 | $10,800 | |
Accounts receivable | 21,500 | 16,100 | |
Inventory | 17,100 | 28,600 | |
Prepaid rent | 9,700 | 6,500 | |
Land | 80,600 | 80,600 | |
Plant and equipment | 430,000 | 322,500 | |
Accumulated depreciation | (69,900) | (32,300) | |
Totals | $497,600 | $432,800 | |
Accounts payable | $12,900 | $10,800 | |
Income taxes payable | 3,200 | 5,400 | |
Short-term notes payable | 37,600 | 26,900 | |
Bonds payable | 81,000 | 108,000 | |
Common stock | 215,000 | 161,300 | |
Retained earnings | 147,900 | 120,400 | |
Totals | $497,600 | $432,800 |
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 $37,600. Net income was reported at $27,500.
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 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of plant and equipment Cash Flows from Financing Activities Retirement of bonds payable Issuance of short-term notes payable Issuance of common stock Net cash provided by financing activities Net increase in cash X Cash balance, December 31, 2016 Cash balance, December 31, 2017Step by Step Solution
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