Refer to the information for Booth Manufacturing on the previous page.

Booth Manufacturing
Income Statement
For the Year Ended December 31, 2016
Revenues.........................................................$1,200,000
Gain on sale of equipment..........................................50,000
Less: Cost of goods sold.........................................(640,000)
Less: Depreciation expense......................................(125,000)
Less: Interest expense.............................................(35,000)
Net income........................................................$ 450,000
Other information includes: (a) Equipment with a book value of $125,000 was soldfor $175,000 (original cost was $225,000); and (b) Dividends of $225,000 were declaredand paid.
Required:
1. Calculate the cash flows from operations using the indirect method.
2. Prepare a statement of cash flows.
3. Search the Internet to find a statement of cash flows. Which method was used-the indirect method or the direct method? How does the net income reported compare with the operating cash flows? To the change in cash flows?
Booth Manufacturing has provided the following financial statements.

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Booth Manufacturing Comparative Balance Sheets At December 31, 2015 and 2016 2015 2016 Cash Accounts receivable Inventories Plant and equipment Accumulated depreciation Land s 112,500 350,000 281.250 150,000 1,025,000 (525,000) 350,000 125,000 1,000,000 (500,000) 500,000 S1,587.500 Total assets Liabilities and equity Accounts payable Mortgage payable Common stock Paid-in capital in excess of par Retained earnings S 237,500 250,000 75,000 300,000 1,137,500 S2.000,000 $ 300,000 75,000 300,000 912.500 1.587.500 Total liabilities and equity