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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 $ 44,985 39,750 46,950 159,500 (40,650) $ 31, eee 32,900 39, eee 134,000 (33,580) $250,535 $203,400 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 44,05 3,325 35,200 103,400 64,560 $ 33,600 3,900 5e, eee 81,1ee 34,800 $250,535 $203, 4ee Income Statement for 2017 Sales Cost of Goods Sold Other Expenses $183,000 106, 140 47, 10e Net Income $ 29,760 Additional Data: a. Bought equipment for cash, $25,500. b. Paid $14,800 on the long-term note payable. c. Issued new shares for $22,300 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,150; wages, $22,650; taxes, $8,100; other, $9.200. 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 not income to not 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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