Comparative balance sheet accounts of Marigold Inc. are presented below MARIGOLD INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts Cash Accounts Receivable Inventory Equity investments Machinery Buildings Land 2017 2016 $41,900 70,600 29,900 22,100 30,300 66,900 7,600 $33,600 60,500 24,000 38,800 18,700 56,500 7,600 $269,300 $239,700 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation- Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,200 9,000 24,700 2,600 31,200 125,000 43,500 $269,300 $239,700 $2,200 5,600 13,700 35,300 3,400 20,800 150,000 38,300 Additional data (ignoring taxes): 1. Net income for the year was $40,700 2. Cash dividends declared and paid during the year were $20,900 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $24,900 were sold during the year for $28,600. No unrealized gains and losses were recorded on these investments in 2017 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250 Marigold's 2017 income statement follows (ignoring taxes) $535,200 377,900 157,300 119,500 37,800 Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,850 depreciation and $5,817 bad debts) Income from operations Other: Gain on sale of investments $3,700 Loss on sale of machinery (800) 2,900 $40,700 Net income (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net cash flow from operating activities (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARIGOLD INC. Statement of Cash Flows Indirect Met Adjustments to reconcile net income to