Company Ltd. at December 31. VERNET COMPANY LTD. Comparative Statements of Financial Position December 31 position for Vernet Prepare a statement of flows-indirect metho (LO 3) Assets 2017 2016 Land 140,000 150,000 Equipment 215,000 175,000 Accumulated depreciation-equipment (70,000) (42,000) Buildings 250,000 250,000 Accumulated depreciation-buildings (70,000) (50,000) Prepaid expenses 12,140 16,540 Inventory 170,000 140,000 Accounts receivable 77,000 64,000 Cash 41,460 57,000 Total 765,600 760,540 Equity and Liabilities Share capital-ordinary, 1 par 275,000 250,000 Retained earnings 187,600 200,540 Bonds payable 265,000 265,000 Accounts payable 38,000 45,000 Total 765,600 760,540 Additional information: 1. Operating expenses include depreciation expense 57,000 and charges from prepaid expenses of 4,400. 2. Land was sold for cash at cost for 35,000. 04 13 Statement of Cash Flows sh from operations 8,400 3. Cash dividends of 82,940 were paid. 4. Net income for 2017 was 70,000. 5. Equipment was purchased for 80,000 cash. In addition, equipment costing 40,000 with a book value of 31,000 was sold for 34,000 cash. 6 Issued 25,000 ordinary shares with a 1 par value for land with a fair value of 25,000. Instructions Prepare a statement of cash flows for 2017 using the indirect method