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A comparative balance sheet for Indigo Corporation is presented below. 5-4 Assets December 31 2017 2016 $ 72,730 $ 22,000 83,020 67,290 181,020 190,290 72,020

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A comparative balance sheet for Indigo Corporation is presented below. 5-4 Assets December 31 2017 2016 $ 72,730 $ 22,000 83,020 67,290 181,020 190,290 72,020 111,290 261,020 201,290 (70) (43 90 ) $599,790 $548,870 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 is by ve $ 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 Prepare a statement of cash flows for 2017 for Indigo Corporation. (Show amounts that decrease cash flo INDIGO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 15 10 Net Income Adjustments to reconcile net income to e alts by tive Depreciation expense Increase in Accounts Receivable 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 $ of bonds outstanding Determine Indigo Corporation's current cash debt coverage, cash debt coverage, and free cash flow Current cash debt coverage :1 Cash debt coverage :1 Free cash flow 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

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