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XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The

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XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Les Accumulated Depreciation $ 49,175 41,450 48,450 131,500 (37,350) $ 35,900 33,600 44,200 118,000 (29,500) $233, 225 $ 202,200 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 37,810 2,905 41,600 99,300 51,610 $ 28,000 3,300 53,200 77.100 40,600 $233, 225 $202,200 Income Statement for 2017 Sales Cost of Goods Sold Other Expenses $155,500 90, 190 54,300 Net Income $ 11,010 Net Income $ 11,010 Additional Data: a. Bought equipment for cash, $13,500. b. Pald $11,600 on the long-term note payable. c. Issued new shares for $22,200 cash d. No dividends were declared or paid. e. Other expenses included depreciation, $7,850; wages, $29,500; taxes, $6,750; other, $10,200. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from oporating activities: Adjustments to reconcile not income to not cash provided by operating activities: XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1, 2017 Cash balance, December 31, 2017

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