Statement of Cash Flows-Indirect Method The income statement for Spectral Corp. 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 22,000 Net loss $(102,000) Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayments Total current assets Land Plant and equipment Accumulated depreciation Total long-term assets Total assets Accounts payable Other accrued liabilities Interest payable 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 $1,275,000 $1,250,000 $125,000 $100,000 35,000 45,000 15,000 10,000 Interest payable Total current liabilities Long-term bank loan payable Common stock Retained camings Total stockholders' equity Total liabilities and stockholders equity 15,000 $175,000 $340,000 $450,000 310,000 $760,000 $1,275,000 10,000 $155,000 $250,000 $400,000 445,000 $845,000 $1,250,000 Other information is as follows: a. Dividends of $33,000 were declared and paid during the year b. Operating expenses include $70,000 of depreciation. c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans. The president has asked you some questions about the year's results. He is disturbed with the $102,000 net loss for the year. He notes, however, that the cash position at the end of the year is improved. He is confused about what appear to be conflicting signals: "How could we have possibly added to our bank accounts during such a terrible year of operations? 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 net loss, cash payments, cash outflows, or decreases in cash. Spectral Corp. Statement of Cash Flows For The Year Ended December 31, 2017 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash provided by operating activities Cash Flows from Operating Activities Adjustments to reconcile net income to net cash provided by operating activities: Cash Flows from Investing Activities Cash Flows from Financing Activities Cash balance, December 3, 2016 Cash balance, December 31, 2017