A comparative balance sheet and income statement for Rocker Company appears below:

ROCKER COMPANY

Comparative Balance Sheet

(in thousands dollars)

20172016AssetsCash$ 24$11Accounts receivable1813Inventory2517Prepaid expenses69Long-term investments-0-17Equipment6033

Truck

Accumulated Depreciation -Equipment

depreciationequipment

10

(20 )

-0-

(15)

Total assets$123$85Liabilities and Stockholders' EquityAccounts payable$ 17$ 7Bonds payable3645Common stock4023Retained earnings 3010 Total liabilities and stockholders' equity$123$85

ROCKER COMPANY

Comparative Income Statement

(in thousands dollars)

Gross Sales$ 142 Sales Returns & Allowances (2) Net Sales140 Cost of Goods Sold(85) Gross Profit55 Operating Expenses(12) Depreciation (5) Income from Operations 38 Loss on Sale of Long-term Investment (3) Net Income 35

Additional information :

1Cash dividends of $___ were declared and paid during the year.2Redeemed Bonds for its book value of $19.3A truck was acquired at Dec 31, by issuing $10 bonds.

Instructions

Prepare the statement of cash flows for the year ended December 31, '17 using the indirect method.