The following financial statements were issued by Hoskins Corporation for the fiscal year ended December 2016. All amounts are in millions of U.S. dollars. Balance Sheets December 31, 2015 December 31, 2016 Assets Cash Accounts Receivable Inventory $900 $1,650 1,800 4,500 1,200 1,500 Prepaid Expenses 1,200 450 Current Assets 5,100 8,100 Property, Plant and Equipment at Cost 18,600 18,300 Less Accumulated Depreciation (6,300) (5,250) Property, Plant and Equipment, Net 12,300 13,050 Total Assets $17,400 $21,150 Liabilities and Shareholders' Equity Accounts Payable $1,200 $2,400 Income Tax Payable 600 300 Short-Term Debt 3,600 8,100 Current Liabilities Long-Term Debt Total Liabilities Contributed Capital 5,400 10,800 3,000 0 8,400 10,800 2,400 2,400 Retained Earnings Total Shareholders' Equity 6,600 7,950 9,000 10,350 Total Liabilities and Shareholders' Equity $17,400 $21,150 Sales Revenues Income Statement Fiscal year 2016 $19,500 Total Liabilities and Shareholders' Equity Income Statement $17,400 Fiscal year 2016 Sales Revenues $19,500 Cost of Goods Sold 10,200 Gross Profit 9,300 Selling, General and Administrative Expenses 4,350 Depreciation Expense 1,050 Operating Income 3,900 Interest Expense 1,050 Income Before Income Tax Expense 2,850 Income Tax Expense 750 Net Income $2,100 Additional information: 1. During fiscal year 2016, Hoskins Corporation acquired new equipment for $3,600 in cash. In addition, the company disposed of used equipment that had original cost of $3,900 and accumulated depreciation of $2,100, receiving $1,800 in cash from the buyer. 2. During fiscal year 2016, Hoskins Corporation arranged short-term bank financing and borrowed $4,500, using a portion of the cash to repay all of its outstanding long-term debt. 3. During fiscal year 2016, Hoskins Corporation engaged in no transactions involving its common stock, though it did declare and pay in cash a common stock dividend of $750. Prepare a statement of cash flows (all three sections) for Hoskins Corporation's fiscal year 2016, using the indirect method for the cash from operations section. Note: Use a negative sign with your answer to indicate a reduction in cash/cash outflow. HOSKINS CORPORATION STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2016 Cash flows from Operations: Adjustments: Change in accounts receivable Change in inventory Change in prepaid expenses Change in accounts payable + $ Cash Flows from Operating Activities S Cash Flows from Investing: Proceeds from disposal of equipment Cash Flows from Investing Activities Cash Flows from Financing Increase in short-term debt Decrease in long-term debt Cash Flows from Financing Activities Net change in cash Ending cash balance