Statement of cash flows—indirect method OBJ. 2 The comparative balance sheet of Coulson, Inc. at December 31, 2016 and 2015, is as follows:

Dec. 31, 2016 Dec. 31, 2015 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800 Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,980,000 990,000 Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . (397,200) (366,000)

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,600 529,800 Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . (133,200) (162,000)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . . . . . . . . . . . $ 594,000 $ 631,200 Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,400 21,600 Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000 0 Common stock, $20 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000 180,000 Paid-in capital: Excess of issue price over par—common stock . . . . . . . . 950,000 810,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,822,000 2,574,600 Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows:

Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.