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, 2017