Comparative Balance Sheet

December 31, 2017 and 2016

Assets 2017 2016

Cash 60,400 80,500

Account Rec 76,340 57,625

Inventory 286,156 258,800

Prepaid expenses 1,280 2,035

Total current assets 424,176 398,960

Equipment 150,500 115,000

Accum. Depreciation- Equip (40,125) (49,500)

Total Assets 524,551 464,460

Liability and Equity

Accounts Payable 60,141 125,175

Short-Term notes payable 12,100 7,400

Total current liabilities 72,241 132,575

Long-Term notes payable 61,500 55,750

Total Liabilities 133,741 188,325

Equity

Common stock, 5$ par value 176,750 157,250

Paid in Capital in excess pf par 44,500 0

Retained Earnings 179,560 118,885

Total liabilities and equity 534,551 464,460

Income statement

for year ended December 31, 2017

Sales $617,500

Cost of Goods 292,000

Gross profit 325,500

Operation expenses

Depreciation expense $24,750

Other expense 139,400 167,150

Other gains (12,125)

Loss on sale of equipment 146,225

Income before taxes 34,050

Net income $112,175

Additional Information on Year 2017 Transactions

1. Net income was $112,175.
2. Accounts receivable increased.
3. Inventory increased.
4. Prepaid expenses decreased.
5. Accounts payable decreased.
6. Depreciation expense was $27,750.
7. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash. This yielded a loss of $12,125.
8. Purchased equipment costing $103,375 by paying $44,000 cash and (i.) by signing a long-term note payable for the balance.
1. Borrowed $4,700 cash by signing a short-term note payable.
10. Paid $53,625 cash to reduce the long-term notes payable.
11. Issued 3,200 shares of common stock for $20 cash per share.
50. Declared and paid cash dividends of $51,500.

Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)