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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 Less: Accumulated Depreciation $ 43,485 40,500 46,150 145, 750 (38,100) $ 31,200 29,700 43,100 124.000 (31,000) $ 237,785 $197,000 $ Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 42,700 1.305 42,900 99,000 51,880 32.900 1.800 53.400 78.600 30,300 $ 237,785 $197,000 Income Statement for 2017 Sales Cost of Goods Sold Other Expenses $164,000 95, 120 47.300 Net Income $ 21,580 Additional Data: a. Bought equipment for cash, $21,750. b. Paid $10,500 on the long-term note payable. c. Issued new shares for $20,400 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,100; wages, $24,100; taxes, $8,600; other, $7,500. 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: Adiustments 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

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