The 2017 comparative balance sheet and income statement of Ace Supply Corp. follow. Ace had no non-cash investing and financing transactions during 2017. During the year, there were no sales of land or equipment, no issuance of notes payable, and no repurchase of shares transactions. (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Requirements 1. Prepare the 2017 statement of cash flows, formatting operating activities by using the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Requirement 1. Prepare the 2017 statement of cash flows, formatting operating activities by using the indirect method. Start by completing the cash flows from operating activities. Then, continue with completing the investing and financing activities sections. Finally, determine the net increase in cash. (Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in a statement of cash flows.) Ace Supply Corp. 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 Decrease in accounts recievable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in salary payable Decrease in other accrued liabilities Net cash provided by operating activities Cash flows from investing activities: Purchase of land Purchase of equipment Net cash used for investing activities Cash flows from financing activities: Payment of dividends Payment of note payable Issuance of common shares Net cash used for financing activities Net increase in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017 Requirement 2. How will what you learned in this problem help you evaluate an investment? O A. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments O B. Learn how companies prepare the statement of cash flows O C. Both A and B OD. None of the above Comparative balance sheet 2017 2016 (Decrease) Current assets: Cash and cash.equivalents .......... $ 17,300 $ 41,700 Accounts receivable................... 6,000 $ 43,000 87,400 1,100 11,300 (1,300) (3,300) 1,500 Inventories............................ 84,100 Prepaid, expenses ..................... 2,600 Property, plant, and equipment: Land. .................................. 89,800 53,000 60,000 49,700 29,800 3,300 Equipment,.net ..... $ 288,500 $ 247,200 $ 41,300 Total assets ........... Current liabilities: Accounts payable........................ $ Salar.y. payable. ............. ...... 35,300 $ 1,700 22,200 34,000 $ 6,200 | 24,400 1,300 (4,500) (2,200) Other accrued liabilities. ................... Long-term liabilities: Notes payable ...........................|| 75,000 102,000 (27,000) Shareholders' equity: Common shares. ......................... 88,700 65,600 64,400 16,200 24,300 49,400 Retained. earnings .................... $ 288,500 $ 247,200 $ 41,300 Total liabilities.and shareholders' equity. ....... Print Done Income statement Ace Supply Corp. Income Statement For the Year Ended December 31, 2017 Revenues: Sales revenue ............ $ 443,000 Expenses: Cost of goods.sold. ........ | $ Salary.expense ........... Depreciation.expense ...... Other operating expense. ... 187,000|| 76,200 4,300 10,700 25,000 28,900 Interest.expense .......... Income tax.expense ........ Total.expenses. 332,100 $ 110,900 Net.income. ......... Print Print Done Done