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2. The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below. Fancy Company Comparative Balance Sheets December 31, December

2. The Fancy Company's comparative balance sheets for 2016 and 2017, and additional information, are presented below.

Fancy Company

Comparative Balance Sheets

December 31, December 31,

2017 2016

ASSETS

Cash $ 14,000 $ 9,000

Accounts receivable 52,000 24,000

Inventory 87,000 40,000

Equipment 125,000 100,000

Accumulated depreciation (42,000) (34,000)

Prepaid expenses 4,000 2,000

Land -0- 7,000

Building 50,000 -0-

Total Assets $290,000 $148,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable $ 25,000 $ 14,000

Interest payable 8,000 6,000

Taxes payable 37,000 11,000

Short-term note payable 37,000 32,000

Bonds payable 75,000 50,000

Common stock, $10 par 75,000 25,000

Retained earnings 33,000 10,000

Total Liabilities and Shareholders Equity $290,000 $148,000

Additional 2017 information:

Net income, $31,000

Sold land for gain of $3,000

Paid dividends of $8,000

Issued $50,000 common stock to purchase building

Required:

Prepare Fancy Company's 2017 statement of cash flows (using the indirect method for operating activities) .

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