Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash $15,000 22,500 Accounts receivable Inventory Prepaid rent Land $12,000 30,000 23,800 13,500 112,500 600,000 (97,500) $694,300 39,700 9,000 112,500 450,000 (45,000) $603,700 Plant and equipment Accumulated depreciation Totals $18,000 4,500 52,500 Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings $ 15,000 7,500 37,500 150,000 225,000 168,700 113,000 300,000 206,300 Totals $694,300 $603,700 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 $52,500. Net income was reported at $37,600. $ 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 bbb0000 0 000000L 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 decrease in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017 A