2. (25 Points) Comparative balance sheet statements of Irving Inc. are presented below: rving Inc. COMPARATIVE BALANCE SHEET ACCOUNTS December 31, 2017 and 2016 December 3 $20,000 25,000 45,500 Assets 48,000 (1,000) 50,000 2,000 10,000 Accounts Receivable Less: Allowance for Doubtful Accounts (1,500) 55,000 Inventory Dividend Receivable 40,000 250,000 70,000 231,000 (35.000) Buildings & Equip. Less:Accumulated depreciation Totals (50.000) $362,000 Liabilities 13,000 20,000 5,000 2,000 8,000 Accounts Payable Salaries Payables Interest payable Income tax payable Note payable Bonds Payable Less: Discount on bonds 2,000 4,000 20,000 98,000 (2,000) 70,000 (3,000) Shareholders' Equity Common Stock Paid-in-capital-excess of par Retained earnings Less: Treasury stock (at cost) 210,000 25,000 200,000 20,000 39,000 (10,000) 47,000 $406.000 Additional data (all transactions occurred in 2017 unless otherwise specified): I. There were no write-offs of uncollectible accounts in 2017 2. A building that originally cost $30,000 with accumulated depreciation balance of $20,000 was sold for $4,000. 3.The common stock of Joys Corporation was purchased for $3,000 as a long-term investment. 4. Land was acquired by paying $10,000 cash and issuing a 13%, seven-year, $20,000 note payable to the seller 5. New equipment was purchased for $11,000 cash. 6. On January 1, $28,000 of bonds was sold at face value. 7. On January 19, Irving issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $15 per share at that time. 8. Cash dividends of $15,000 were paid to shareholders. 9. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $10,000. Irving uses the cost method to account for treasury stock. Irving's 2017 income statement follows (ignore taxes): Revenues Sales $200,000 3.000 Dividend revenue $203,000 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of building Income tax expense 120,000 26,000 5,000 8,000 6,000 16.000 181.000 $ 22,000 Net income Required: Prepare a statement of cash flows for the year ended 2017 using the indirect method