Statement of Cash FlowsIndirect Method

The following balances are available for Chrisman Company:

	December 31
	2016		2015
Cash	$11,400		$14,300
Accounts receivable	28,500		21,400
Inventory	22,600		37,700
Prepaid rent	12,800		8,600
Land	106,900		106,900
Plant and equipment	570,000		427,500
Accumulated depreciation	(92,600)		(42,800)
Totals	$659,600		$573,600
Accounts payable	$17,100		$14,300
Income taxes payable	4,300		7,100
Short-term notes payable	49,900		35,600
Bonds payable	107,000		143,000
Common stock	285,000		213,800
Retained earnings	196,300		159,800
Totals	$659,600		$573,600

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 $49,800. Net income was reported at $36,500.

Required:

Question Content Area

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 December 31, 2016

Cash Flows from Operating Activities
Cash collected from customersCash dividends paidIssuance of common stockNet incomeNet increase in cashRetained earnings	$- Select -
Adjustments to reconcile net income to net cash provided by operating activities:
Acquisition of landAcquisition of plant and equipmentDepreciation expenseIssuance of bonds payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
Acquisition of plant and equipmentDecrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableIssuance of short-term notes payableRetirement of bonds payable	- Select -
Acquisition of plant and equipmentDecrease in inventoryIncrease in income taxes payableIncrease in inventoryIssuance of short-term notes payableRetirement of bonds payable	- Select -
Acquisition of plant and equipmentDecrease in prepaid rentIncrease in landIncrease in prepaid rentIssuance of short-term notes payableRetirement of bonds payable	- Select -
Acquisition of plant and equipmentDecrease in accounts payableDecrease in accounts receivableIncrease in accounts payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
Acquisition of plant and equipmentDecrease in accounts payableDecrease in income taxes payableIncrease in income taxes payableIssuance of short-term notes payableRetirement of bonds payable	- Select -
Net cash provided by operating activitiesNet cash used in operating activities	$- Select -
Cash Flows from Investing Activities
Acquisition of plant and equipmentDecrease in accounts payableDecrease in income taxes payableIncrease in income taxes payableIssuance of short-term notes payableRetirement of bonds payable	$- Select -
Cash Flows from Financing Activities
Acquisition of plant and equipmentDecrease in income taxes payableDecrease in inventoryIncrease in prepaid rentIssuance of bonds payableRetirement of bonds payable	$- Select -
Acquisition of plant and equipmentDecrease in inventoryDepreciation expenseIncrease in accounts payableIssuance of short-term notes payablePayment of short-term notes payable	- Select -
Acquisition of plant and equipmentDecrease in inventoryDepreciation expenseIncrease in accounts receivableIssuance of common stockPayment of cash dividends	- Select -
Net cash provided by financing activitiesNet cash used in financing activities	$- Select -
Net decrease in cashNet increase in cash	$- Select -
Cash balance, December 31, 2015	fill in the blank af2c190ae00f064_29
Cash balance, December 31, 2016	$fill in the blank af2c190ae00f064_30