(L02) (SCF—Indirect Method and Balance Sheet) Jobim Inc. had the following condensed balance sheet at the end of operations for 2016.

During 2017, the following occurred.
1. A tract of land was purchased for $9,000.
2. Bonds payable in the amount of $15,000 were redeemed at par.
3. An additional $10,000 in common stock was issued at par.
4. Dividends totaling $9,375 were paid to stockholders.
5. Net income was $35,250 after allowing depreciation of $13,500.
6. Land was purchased through the issuance of $22,500 in bonds.
7. Jobim Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company.
No unrealized gains or losses were recorded on these investments in 2017.
8. Both current assets (other than cash) and current liabilities remained at the same amount.
Instructions

(a) Prepare a statement of cash flows for 2017 using the indirect method.

(b) Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2017.

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Cash Current assets other than cash Equity investments Plant assets (net) Land JOBIM INC. BALANCE SHEET DECEMBER 31, 2016 $ 8,500 Current liabilities $ 15,000 29,000 Long-term notes payable 25,500 20,000 Bonds payable 25,000 67,500 Common stock 75,000 40,000 Retained earnings 24,500 $165,000 $165,000