The 2017 comparative balance sheet and income statement of Summer Time Hardware Corp. follow. Summer Time 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. E (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.) Summer Time Hardware 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 Enter any number in the edit fields and then continue to the next question. 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 companies prepare the statement of cash flows B. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments OC. Both A and B D. None of the above Enter any number in the edit fields and then continue to the next question. O Comparative balance sheet Summer Time Hardware Corp. Comparative Balance Sheet As at December 31, 2017 and 2016 December 31, Increase (Decrease) 2017 2016 Current assets: 5,900 s 45,000 88,000 17,300 S 41,800 83,800 2,500 11,400 Cash and cash equivalents Accounts receivable (3,200) (4,200) Inventories 1,400 Prepaid expenses 1,100 ...... Property, plant, and equipment: 89,200 53,400 60,300 49,600 Land 28,900 3,800 Equipment, net $ 288,000 S 250,200 S 37,800 Total assets Current liabilities: $ 35,400 s 33,600 S 1,700 22,000 Accounts payable 1,800 6,400 Salary payable (4,700) 24,600 Other accrued liabilities (2,600) Long-term liabilities: 73,500 101,000 Notes payable (27,500) Shareholders' equity: 64,300 20,300 88,300 67,100 Common shares 24,000 46,800 Retained earnings $ 288,000 S 250,200 S 37,800 Total liabilities and shareholders' equity %24 i Income statement Summer Time Hardware Corp. Income Statement For the Year Ended December 31, 2017 Revenues: $ 442,000 Sales revenue Expenses: $ 185,200 Cost of goods sold Salary expense 77,000 Depreciation expense 4,300 Other operating expense 10,900 24,000 Interest expense 29,300 Income tax expense 330,700 Total expenses $ 111,300 Net income