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15. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Keating Corporation for the year 2018 are shown below.

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15. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Keating Corporation for the year 2018 are shown below. 87,000 78,200 74,200 DebitCredit $121,000 13,300 22,800 Cash Account Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Investment in subsidiary (equity method) Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, $10 par Additional paid-in capital Retained earnings-Appropriation for bonded indebtedness60,000 25,000 130,000 21,500 70,000 210,000 80,700 15,500 90,000 $643.600 $643,600 An analysis of the Retained Earnings-Unappropriated account follows: Retained earnings unappropriated, December 31, 2017 Add: Net income $1,300,000 307,000 Transfer from appropriation for bonded indebtedness Total $1,667,000 Deduct: Cash dividends Stock dividend $165,000 Retained carnings unappropriated, December 31, 2018 405.000 $1,262,000 1. On January 2, 2018 short-term investments (classified as available-for-sale) costing $121,000 2. The company paid a cash dividend on February 1, 2018. were sold for $155,000. 3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2018 and 2017, respectively during the year. No assets were retired during 2018. the parent 4.Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account S. The wholly owned subsidiary reported a net loss for the year of $25,000. The loss was recorded by 6. At January 1, 2018, the cash balance was $166,000. Instructions Prepare a statement of cash flows (indirect method) for the year ended December 31, 2018. Keating Corporation has no securities which are classified as cash equivalents

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