Statement of Cash Flows-Indirect Method The income statement for Astro Inc. for 2017 is as follows: For the Year Ended December 31, 2017 Sales revenue $500,000 Cost of goods sold 400,000 Gross profit $100,000 Operating expenses 180,000 Loss before interest and taxes $(80,000) Interest expense 24,000 Net loss $(104,000) Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets December 31 2017 2016 $95,000 $80,000 50,000 75,000 100,000 150,000 55,000 45,000 $300,000 $350,000 $475,000 $400,000 870,000 800,000 (370,000) (300,000) $975,000 $900,000 Chapter 12 Homework wo Tocal long-term assets Total assets Accounts payable Other accrued abilities Interest payable Total current liabilities Long-term bank loan payable Common stock Retained earnings Total stockholders' equity Total abilities and stockholders equity 5975,000 51,275,000 $125,000 35,000 15,000 $125,000 $340,000 3450,000 310,000 5760,000 $1,275,000 5900,000 $1,250.000 $100,000 45,000 10,000 5155,000 $250,000 1-400,000 465,000 5645,000 51.250,000 Other informations as follows Dividends of $31.000 were dedant and paid during the year Operating produce $70,000 of deprecation Land and plant and equipment were acquired for cash and in stock was issued for cash Casha was received from additional Bank loans The president has asked you come questions about the year's results. He is disturbed with the $104.000 net oss for the year. He notes, however, that the cash position at the end of the years improve He is confused about what appear to be conficting signal "How we have powly added to our bank accounts during such a terrible year of operationa?" Requiredi 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate net loss, cash payments, cash outflows, or decrease in cash Astro Inc. Statement of Cash Flows For The Year Ended December 31, 2017 Cash Flows from Operating Activities Netloss Book 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus to indicate netos, cash payments, thoutons, or decres in Astro Inc. Statement of Cash Flows For The Year Ended December 31, 2017 Cash Flows from Operating Activities Netloss Adjustments to reconcile net income to net cash provided by operating activities Depreciation opense O pulliQUI DO Cash Flows from investing Activities Cash Pows from Financing Activities My Work more Check My Workoming Chapter 12 Homework eBook Cash Flows from Investing Activities $ Cash Flows from Financing Activities Cash balance, December 31, 2016 Cash balance, December 31, 2017 2. Despite a net loss for the year, Astro was able to increase its cash at the end of the year by buying back its stock. Astro can increase its net profits by Reduce operating expenses