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.

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 leamed 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 Issuance of common shares Net cash used for financing activities Net increase in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017 Income statement Summer Time Hardware Corp. Income Statement For the Year Ended December 31, 2017 Revenues: $ 440,000 Sales revenue Expenses: $ 185,100 Cost of goods sold 76,900 Salary expense Depreciation expense 3,800 Other operating expense 10,600 25,000 29,000 Interest expense Income tax expense 330,400 Total expenses $ 109,600 Net income Print Done 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 $ 17,700 $ Cash and cash equivalents 11,800 43,500 87,300 41,700 Accounts receivable (1,800) (4,100) Inventories 83,200 Prepaid expenses 2,300 1,000 1,300 Property, plant, and equipment: 60,900 Land 89,700 28,800 49,700 52,900 3,200 Equipment, net $ 287,500 $ 248,600 S 38,900 Total assets Current liabilities: 35,500 s 33,900 s 6,400 23,900 1,600 Accounts payable 2,400 Salary payable (4,000) Other accrued liabilities 22,800 (1,100) Long-term liabilities: 101,000 74,500 Notes payable (26,500) Shareholders' equity: 64,900 89,000 Common shares 24,100 63,300 18,500 44,800 Retained earnings $287,500 s 248,600 s 38,900 Total liabilities and shareholders' equity Print Done %24