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Comparative balance sheets for Dream Engines Ltd are presented below. Dream Engine Ltd Comparative Balance Sheet Decemebr 31 Assets 2017 Cash 78000 Accouts Receivable 93000

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Comparative balance sheets for Dream Engines Ltd are presented below. Dream Engine Ltd Comparative Balance Sheet Decemebr 31 Assets 2017 Cash 78000 Accouts Receivable 93000 Inventory 180000 Land 75000 Equipemnt 250000 Accu Dep - Equipment (66,000 Total 610000 2016 12000 76000 189000 100000 210000 (42,000) 545000 Liabity and Equity Accounts Payable Bonds Payable Common Stock ($1 Par Retained Earnings 34000 150000 214000 212000 610000 47000 200000 164000 134000 545000 Total Additional information: 1. Net income for 2017 was $134000 2. Cash dividends of $65,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $50,000 cash. 5. Depreciation expense was $24,000. 6. Sales revenue for the year was $978,000. 7. Land was sold at cost, and equipment was purchased for cash. Instructions a. Prepare a statement of cash flows for 2017 using the indirect method. b. Comment on the quality of income of the company. b. Comment on investing and financings cashflows of the company

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