7B Harman Corporations comparative balance sheets are presented below.

HARMAN CORPORATION

Comparative Balance Sheets

December 31 2017 2016

Cash $ 27,200 $ 17,700

Accounts receivable 24,200 22,300

Investments 20,000 16,000

Prepaid Expenses 10,000 15,000

Equipment 60,000 70,000

Accumulated depreciation (14,000) (10,000)

Total $127,400 $131,000

Accounts payable $ 19,600 $ 11,100

Taxes Payable 6,000 1,000

Bonds payable 14,000 30,000

Common stock 55,000 60,000

Retained earnings 32,800 29,900

Total $127,400 $131,000

Additional information:

1. Net income was $34,300. Dividends declared and paid were $31,400.

2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $5,300.

3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Instructions

(a) Prepare a statement of cash flow from operations for 2017 using the indirect method.