1. The comparative balance sheet for Dream Big Travel Services, Inc., for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Dream Big Travel Services, Inc.: 2(Click the Icon to view the transaction data.) Dream Big Travel Services, Inc., uses the Indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for 2017. (Use parentheses or a minus sign for numbers to be subtracted or net cash outflow.) Dream Big Travel Services, Inc. Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Adjustments to reconcile net income to cash basis: (2) (3) (4) (5) (6) (7) (8) (9) (10) Net cash provided by (used for) operating activities 1: Balance Sheet 1/5 Dream Big Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash Accounts receivable $ 43,000 $ 22,000 76,000 82,000 62,000 16,000 Inventory Prepaid Insurance 10,000 18,000 Total current assets $191,000 $ 138,000 Land Equipment $ 103,000 $ 117,000 77,000 56,000 (17,000) (10,000) Less: Accumulated depreciation $ 354,000 $ 301,000 Total assets Liabilities Current liabilities: Accounts payable $ 27,000 $ 31,000 29,000 22,000 Wages payable Interest payable 19,000 17,000 7,000 5,000 Income taxes payable Total current liabilities $ 82,000 $ 75,000 93,000 84,000 Notes payable (long-term) Total liabilities $ 175,000 $ 159,000 Stockholders' equity Common stock $ 123,000 $ 114,000 56,000 28,000 Retained earnings Total stockholders' equity $ 179,000 $ 142,000 Total liabilities and equity $ 354,000 $ 301,000 2: Transactions 2/5 a. Land was sold for $10,000. b. Equipment was purchased for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. Net income for 2017 was $40,000. f. Cash dividends paid during the year were $12,000. (1) Decrease in income taxes payable Cash used to purchase equipment O Decrease in interest payable O Decrease in accounts payable O Decrease in Inventory O Decrease in accounts recelvable Decrease in prepald Insurance Decrease in wages payable O Increase in accounts receivable O Increase in prepaid insurance Depreciation expense Increase in income taxes payable Increase in wages payable O Dividends pald Increase in interest payable Issuance of stock for cash Increase in accounts payable O Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes Proceeds from the sale of land (2) O O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable Decrease in Inventory O Decrease in accounts receivable O Decrease in prepaid insurance Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense O Increase in income taxes payable Increase in wages payable Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase in Inventory Loss on sale of land O Net Income O Proceeds from issuance of long term notes Proceeds from the sale of land (3) O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable Decrease in inventory O Decrease in accounts recelvable O Decrease in prepald Insurance Decrease in wages payable Increase in accounts recevable Increase in prepald Insurance Depreciation expense O Increase in income taxes payable Increase in wages payable Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable O Increase in inventory Loss on sale of land Net income Proceeds from issuance of long term notes O Proceeds from the sale of land 3/5 (4) O Decrease in Income taxes payable Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory Decrease in accounts receivable O Decrease in prepaid insurance Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense O Increase in income taxes payable Increase in wages payable O Dividends paid O Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase In Inventory Loss on sale of land Net Income O Proceeds from issuance of long term notes Proceeds from the sale of land (5) O Decrease in Income taxes payable Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory O Decrease in accounts receivable Decrease in prepaid insurance Decrease in wages payable Increase in accounts recelvable Increase in prepald Insurance Depreciation expense Increase in income taxes payable O Increase in wages payable O Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase in inventory Loss on sale of land Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (6) Decrease in Income taxes payable O Cash used to purchase equipment Decrease in interest payable Decrease in accounts payable Decrease in inventory Decrease in accounts receivable O Decrease in prepaid insurance Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense O Increase in income taxes payable Increase in wages payable Dividends pald O Increase in Interest payable Issuance of stock for cash Increase in accounts payable Increase in inventory O Loss on sale of land Net Income Proceeds from Issuance of long term notes O Proceeds from the sale of land (7) O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable Decrease in Inventory Decrease in accounts receivable Decrease in prepaid insurance Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense Increase in Income taxes payable Increase in wages payable O Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase in inventory Loss on sale of land Net income O Proceeds from Issuance of long term notes Proceeds from the sale of land 4/5 (8) O Decrease in Income taxes payable Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory Decrease in accounts receivable O Decrease in prepaid insurance Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense O Increase in income taxes payable Increase in wages payable O Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase In Inventory Loss on sale of land O Net Income O Proceeds from issuance of long term notes Proceeds from the sale of land (9) O O Decrease in Income taxes payable Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory O Decrease in accounts receivable Decrease in prepaid insurance Decrease in wages payable Increase in accounts recelvable Increase in prepald Insurance Depreciation expense Increase in income taxes payable O Increase in wages payable Dividends paid Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase in inventory Loss on sale of land Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (10) O Decrease in Income taxes payable Cash used to purchase equipment Decrease in interest payable Decrease in accounts payable Decrease in inventory O Decrease in accounts receivable Decrease in prepaid insurance O Decrease in wages payable Increase in accounts receivable Increase in prepaid insurance Depreciation expense O Increase in income taxes payable Increase in wages payable O Dividends pald O Increase in Interest payable Issuance of stock for cash O Increase in accounts payable Increase in inventory O Loss on sale of land Net Income O Proceeds from Issuance of long term notes O Proceeds from the sale of land 5/5