The comparative balance sheets for Spicer Company as of December 31 are presented below. LO11 SPICER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 68,000 $ 45,000 Accounts receivable 50,000 58,000 Inventory 151,450 142,000 Prepaid expenses 15,280 21,000 Land 145,000 130,000 Buildings 200,000 200,000 Accumulated depreciation—buildings (60,000) (40,000)

Equipment 225,000 155,000 Accumulated depreciation—equipment (45,000) (35,000)

Total $749,730 $676,000 Liabilities and Stockholders’ Equity Accounts payable $ 44,730 $ 36,000 Bonds payable 300,000 300,000 Common stock, $1 par 200,000 160,000 Retained earnings 205,000 180,000 Total $749,730 $676,000 Additional information:

1. Operating expenses include depreciation expense of $42,000.

2. Land was sold for cash at book value.

3. Cash dividends of $12,000 were paid.

4. Net income for 2017 was $37,000.

5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash.

6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.

Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.