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 $ 39,065 $ 34,600 Accounts Receivable 46,200 36, 200 Merchandise Inventory 49,700 45,100 Property and Equipment 169,750 130,000 Less: Accumulated Depreciation (40,200) (32,500) $264,515 $213,400 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 47,950 $ 34,300 2,435 2,700 37,000 45,600 97,500 80,100 79,630 50,700 $264,515 $213,400 Income Statement for 2017 Sales $ 201,500 Cost of Goods Sold 116,870 Other Expenses 55,700 Net Income $ 28,930 Additional Data: a. Bought equipment for cash, $39,750. b. Paid $8,600 on the long-term note payable. c. Issued new shares for $17,400 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,700; wages, $28,100; taxes, $9,900; other, $10,000. f. 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: 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: 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 2. Not available in Connect