Below is the statement of income and comparative balance sheets of Dair Company.

DAIRY COMPANY Income statement For the year ended December 31, 2017
Sales		$ 700,000
cost of goods sold	$ 440,000
Salaries and other operating expenses	95,000
depreciation expense	22,000
amortization expenses	7,000
Interest expenses	10,000
Income from tax expenses	36,000
Loss on withdrawal of bonds	5,000	615,000
Net Income		85,000

DAIRY COMPANY Balances
	December 31, 2017	December 31, 2016
Assets
Money	$ 27,000	$ 18,000
accounts receivable	53,000	48,000
Inventory	103,000	109,000
Prepaid expenses	12,000	10,000
plant assets	360.000	336,000
Accumulated depreciation	(87,000)	(84,000)
intangible assets	43,000	50,000
total assets	$ 511,000	$ 487,000
Liabilities and Equity
Accounts payable	$ 32,000	$ 26,000
interest to pay	4,000	7,000
Income tax payable	6,000	8,000
Obligations with the public	60.000	120,000
Common actions	252,000	228,000
Retained earnings	157,000	98,000
Total liabilities and equity	$ 511,000	$ 487,000

During 2017, the company sold old equipment that cost $36,000 and had accumulated depreciation of $19,000 for $17,000 in cash. Also in 2017, $60,000 worth of new equipment was purchased in exchange for $60,000 of bonds payable, and the $120,000 bonds payable were retired for cash at a loss. A cash dividend of $26,000 was declared and paid in 2017. All stock issuances were in cash.

(a) Calculate the change in cash that occurred in 2017.

Effective December 31, 2017	$Response
Effective December 31, 2016	Answer
Cash increase during 2017	$Response

(b) Prepare a statement of cash flows for 2017 using the indirect method.

Use negative signs with the answers to show a decrease in cash.

DAIRY COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017
Net cash flow from operating activities
Net Income	$response
Add (deduct) items to convert net income to cash
Depreciation	Answer
amortization expenses	Answer
Loss from Withdrawal of Bonds	Answer
Increase in accounts receivable	Answer
inventory decrease	Answer
Increase in prepaid expenses	Answer
Increase in accounts payable	Answer
Decrease in interest payable	Answer
Income tax payable Decrease	Answer
Net cash provided by operating activities		Answer
Cash flows from investing activities
Equipment sale		Answer
Cash flows from financing activities
Withdrawal of Bonds Payable	Answer
Issuance of Common Stock	Answer
Dividend Payment	Answer
Net cash used for financing activities		Answer
Net increase in cash		Answer
Effective at the beginning of the year		Answer
Effective at the end of the year		$Response

(c) Prepare separate schedules that show (1) cash paid for interest and income taxes and (2) investment and financing transactions that are not in cash.

(1) Supplemental Cash Flow Disclosures
Cash paid for interest	$response
Cash paid for income taxes	$Response

(2) List of non-cash investing and financing activities
Issuance of Bonds Payable for the Acquisition of Equipment	$Response