Problem
Statement of Cash Flows-Indirect Method
The following balances are available for Chrisman Company:
|
December 31
|
|
|
2017
|
2016
|
|
Cash
|
$12,400
|
$15,500
|
|
Accounts receivable
|
31,000
|
23,300
|
|
Inventory
|
24,600
|
41,100
|
|
Prepaid rent
|
14,000
|
9,300
|
|
Land
|
116,300
|
116,300
|
|
Plant and equipment
|
620,000
|
465,000
|
|
Accumulated depreciation
|
(100,800)
|
(46,500)
|
|
Totals
|
$717,500
|
$624,000
|
|
|
|
|
|
Accounts payable
|
$18,600
|
$15,500
|
|
Income taxes payable
|
4,700
|
7,800
|
|
Short-term notes payable
|
54,300
|
38,800
|
|
Bonds payable
|
116,000
|
155,000
|
|
Common stock
|
310,000
|
232,500
|
|
Retained earnings
|
213,900
|
174,400
|
|
Totals
|
$717,500
|
$624,000
|
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $54,300. Net income was reported at $39,500.
• Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.