Week 5 - Assignment 1 eBook Statement of Cash Flows-Indirect Method The following balances are available for Chrisman Company: December 31 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation Totals 2017 $9,000 22,500 17,900 10,100 84,400 450,000 (73,100) $520,800 2016 $11,300 16,900 29,900 6,800 84,400 337,500 (33,800) $453,000 Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals $13,500 3,400 39,400 84,000 225,000 155,500 $520,800 $11,300 5,600 28,100 113,000 168,800 126,200 $453,000 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 $39,300. Net income was reported at $29,300. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Chrisman Company Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net income o Adinctments to reronrile not income to not rach nrovided by onerating activitiec Week 5 - Assignment 1 eBook 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 $39,300. Net income was reported at $29,300. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Chrisman Company 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 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 ODDOD O DDIDD00 0 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 Week 5 - Assignment 1 eBook 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 IIII) I DID0000 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 Feedback 2. Based on its statement of cash flows, Chrisman did not generate enough cash flow from its operating activities to fund its investing activities. In addition to operating activities, Chrisman generated cash by issuing a note as well as issuing common stock