Mark Heath has completed the basic format to be used inpreparing the statement of cash flows (indirect method) for ABCConsultants. ABC Consultants Statement of Cash Flows For the YearEnded December 31, 2017 Cash Flows from Operating Activities Netincome Adjustments to reconcile net income to net cash flows fromoperating activities: Net cash flows from operating activities CashFlows from Investing Activities Net cash flows from investingactivities Cash Flows from Financing Activities Net cash flows fromfinancing activities Net increase (decrease) in cash (50,000) Cashat the beginning of the period 95,000 Cash at the end of the period$45,000 Listed below in random order are line items to be includedin the statement of cash flows. Purchase of equipment $220,000Increase in inventory 30,000 Increase in prepaid rent 10,000Payment of dividends 40,000 Depreciation expense 20,000 Increase inaccounts receivable 60,000 Increase in accounts payable 10,000 Losson sale of land 7,000 Net income 70,000 Repayment of notes payable50,000 Cash received from the sale of land 3,000 Issuance of commonstock 250,000 Required: Prepare the statement of cash flows for ABCConsultants using the indirect method (12 points). ~~
