The following balances are available for Chrisman Company: Cash Accounts receivable Inventory December 31 2017 2016 $8,500 $10,600 21,300 15,900 16,900 28,200 9,600 6,400 79,700 79,700 425,000 318,800 (69,100) (31,900) $491,900 $427,700 Prepaid rent Land Plant and equipment Accumulated depreciation Totals Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings $12,800 3,200 37,200 80,000 212,500 146,200 $491,900 $10,600 5,300 26,600 106,000 159,400 119,800 $427,700 Totals Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $37,200. Net income was reported at $26,400. LUJI IUVJ TIULUPI Ulily NCLIVILICS Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Increase in accounts payable Decrease in income taxes payable Net cash provided by operating activities Cash Flows from Investing Activities Acquisition of plant and equipment Cash Flows from Financing Activities Retirement of bonds payable Issuance of short-term notes payable Issuance of common stock Net cash provided by financing activities Net decrease in cash Cash balance, December 31, 2016 Cash balance, December 31, 2017