5-4 ts by ve A comparative balance sheet for Indigo Corporation is presented below. December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2017 $ 72,730 83,020 181,020 2016 $ 22,000 67,290 190,290 111,290 201,290 (43,290 ) $599,790 $548,870 72,020 261,020 (70,020) $ 35,020 150,000 214,000 200,770 $599,790 $ 48,290 200,000 164,000 136,580 $548,870 Additional information: 1. Net income for 2017 was $127,040. No gains or losses were recorded in 2017. 2. Cash dividends of $62,850 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2017 for Indigo Corporation. (Show amounts that decre 15 16 2 alts by tive Prepare a statement of cash flows for 2017 for Indigo Corporation. (Show amounts that decrease cash flow INDIGO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Depreciation expense Increase in Accounts Receivable Y Decrease in Inventory Decrease in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Land Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Net Cash Used by Financing Activities Cash at Beginning of Year Cash at End of Year Noncash Investing and Financing Activities Issued common stock to retire $ Determine Indigo Corporation's current cash debt coverage, cash debt coverage, and free cash flow Current cash debt coverage Cash debt coverage Free cash flow :1 11 of bonds outstanding Comment on its liquidity and financial flexibility. Indigo has liquidity. Its financial flexibility is Click if you would like to Show Work for this question: Open Show Work