2. Wolff Company's income statement and comparative balance sheets follow: WOLFF COMPANY Incomo Statomont For Year Ended December 31, 2017 Sales.. Cost of goods sold. Wages expense Insurance expense Depreciation expense. Interest expense. Income tax expense. Net income.. Assets Cash.. Accounts receivable. Inventory. Prepaid insurance. PPE. Accumulated depreciation Total assets. $635,000 $430,000 86,000 8,000 17,000 9,000 29,000 579,000 $ 56,000 WOLFF COMPANY Balanco Shoot Doc. 31, 2017 Doc. 31, 2016 $11,000 $ 5,000 41,000 32,000 90,000 60,000 5,000 7,000 250,000 195,000 (68,000) (51,000) $329,000 $248,000 Doc. 31, 2017 Doc. 31, 2016 Liabilities and Stockholders' Equity Accounts payable. Wages payable. $ 7,000 9,000 $ 10,000 6,000 Income tax payable 7,000 8,000 Bonds payable Common stock. 130,000 75,000 90,000 90,000 Retained earnings Total liabilities and equity 86,000 59,000 $329,000 $248,000 Cash dividends of $29,000 were declared and paid during 20X7. Also in 20X7, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases. a. Compute the change in cash that occurred during 20X7. b. Prepare and 20X7 statement of cash flows using the indirect method.