10 points

The comparative balance sheets and income statement for Franklin Company follow:

Balance Sheets
As of December 31
	2017				2016
Assets
Cash	$	22,173			$	2,580
Accounts receivable		1,620				972
Inventory		6,283				5,890
Equipment		21,273				43,063
Accumulated depreciation Equipment		(9,933	)			(18,645	)
Land		19,508				10,498
Total assets	$	60,924			$	44,358
Liabilities and equity
Accounts payable (inventory)	$	2,541			$	4,105
Long-term debt		2,734				6,248
Common stock		22,300				10,000
Retained earnings		33,349				24,005
Total liabilities and equity	$	60,924			$	44,358

Income Statement
For the Year Ended December 31, 2017
Sales revenue	$	34,880
Cost of goods sold		(13,825	)
Gross margin		21,055
Depreciation expense		(3,026	)
Operating income		18,029
Gain on sale of equipment		750
Loss on disposal of land		(90	)
Net income	$	18,689

Additional Data

1. During 2017, the company sold equipment for $18,012; it had originally cost $29,000. Accumulated depreciation on this equipment was $11,738 at the time of the sale. Also, the company purchased equipment for $7,210 cash.

2. The company sold land that had cost $3,290. This land was sold for $3,200, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $12,300 at the time of exchange.

3. Paid dividends of $9,345.

Required

Prepare a statement of cash flows using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.)