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 Less: Accumulated Depreciation $ 43,495 48,950 48,850 132,250 (38,150) $ 235, 395 $ 35,800 37,000 45,200 126,000 (31,500) $212,500 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 47,100 3,175 38, 450 95, 400 51,270 $ 34,500 3,800 44,800 79, 100 50,300 $235,395 $212,500 Income Statement for 2017 Sales Cost of Goods Sold Other Expenses $121,000 70, 180 49,850 Net Income $ 970 Additional Data: a. Bought equipment for cash, $6,250. b. Paid $6,350 on the long-term note payable. C. Issued new shares for $16,300 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $6,650; wages, $28,900; taxes, $6,700; other, $7,600. 1. 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 operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 0 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 Net increase in cash during the year Cash balance, January 1, 2017 Cash balance, December 31, 2017 $ 0