Condensed fi nancial data of Granger Inc. follow. LO11 GRANGER INC.

Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 80,800 $ 48,400 Accounts receivable 87,800 38,000 Inventory 112,500 102,850 Prepaid expenses 28,400 26,000 Long-term investments 138,000 109,000 Plant assets 285,000 242,500 Accumulated depreciation (50,000) (52,000)

Total $682,500 $514,750 Liabilities and Stockholders’ Equity Accounts payable $102,000 $ 67,300 Accrued expenses payable 16,500 21,000 Bonds payable 110,000 146,000 Common stock 220,000 175,000 Retained earnings 234,000 105,450 Total $682,500 $514,750 GRANGER INC.

Income Statement Data For the Year Ended December 31, 2017 Sales revenue $388,460 Less:

Cost of goods sold $135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income tax expense 27,280 Interest expense 4,730 Loss on disposal of plant assets 7,500 233,880 Net income $154,580 Additional information:

1. New plant assets costing $100,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of

$48,500 were sold for $1,500 cash.

3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Instructions Prepare a statement of cash flows using the indirect method.