15. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Keating Corporation for the year 201S are shown below. Account Debit Credit Cash Short-term investments Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Investment in subsidiary (equity method) Plant and equipment s 87,000 $121,000 78,20013.300 74,200 22,800 25,000 130,000 210,000 80,700 15,500 Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, $10 par Additional paid-in capital Retained carnings Appropriation for bonded indebtedness Retained earnings-Unappropriated 21,500 70,000 90,000 150,000 60,000 643,600 S643.600 An analysis of the Retained Earnings-Unappropriated account follows: Retained earnings unappropriated, December 31, 2017 Add: Net income $1,300,000 307,000 60,000 $1,667,000 Transfer from appropriation for bonded indebtedness Total S165,000 Deduct: Cash dividends Stock dividend Retained earnings unappropriated, December 31, 2018 S1.262.000 1. On January 2, 2018 short-term investments (classified as available-for-sale) costing $121,000 were sold for $155,000 2. The company paid a cash dividend on February 1, 2018 3. Accounts receivable of $16,200 and $19,400 2018 and 2017, respectively 4. Major repairs of s33,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2018. 5. The wholly owned subsidiary reported a net loss for the year of $25,000. The loss was recorded by the parent. 6. At January 1, 2018, the cash balance was $166,000. were considered uncollectible and written off in 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. Page 12