a) Prepare a Statement of Cash Flows for December 31, 2016 using the indirect method.

1. Following information shows the Balance Sheet and Income Statement of Charles Corporation. 2015 Charles Corporation Comparative Balance Sheets for 2015 & 2016 2016 Assets Cash Tk, 16,500 Accounts Receivable 90,000 Inventory 110.000 Prepaid Expenses 25,500 Investments (Long Term) 175.000 Equipment 225.000 Accumulated Depreciation (45.000) Total Assets Tk. 597,000 Tk. 57,400 58.000 70,000 32,000 120,000 200.000 (50,000) Tk. 487,400 Liabilities and Stockholders' Equity Accounts Payable Salaries Payable Bonds Payable Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Tk. 69,800 18,200 196,000 284.000 39.000 274,000 313,000 Tic. 597.000 Tk. 47,000 26,900 142.000 215,900 51,000 220,500 271,500 TK. 487,400 Charles Corporation Income Statement For the year ended December 31, 2016 Tk. Net Sales 800.000 Cost of Goods Sold (350.000) Gross Profit 450.000 Operating Expenses (180,000) Income from Operations 270.000 Interest Expense (50,000) Income Before Income Taxes 220.000 Income Tax Expense (160.000) Net locome 60,000 Additional data: New equipment costing Tk. 80.000 was purchased for cash during the year. Old equipment costing Tk. 55,000 with a book value of Tk 27,500 was sold for Tk. 12,500 cash. Cash dividends of Tk 19,000 were declared and paid. Depreciation expense of Tk. 35,000 is included in the operating expenses