Condensed financial data of Marigold Company for 2017 and 2016 are presented 2016 MARIGOLD COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,810 Receivables 1,740 Inventory 1,630 Plant assets 1,910 Accumulated depreciation (1,220) Long-term investments (held-to-maturity) 1,280 $7,150 $1,160 1,310 1,890 1,720 (1,180 ) 1,420 $6,320 $1,220 190 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings 1,420 1,940 2,380 $7,150 $920 240 1,580 1,730 1,850 $6,320 MARIGOLD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains $6,960 4,780 2,180 920 1,260 OTTITTUIT SLUCK 17970 Retained earnings 2,380 $7,150 1773 1,850 $6,320 $6,960 4,780 2,180 920 MARIGOLD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 1,260 80 1,340 550 790 260 $530 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either MARIGOLD COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income 790 MARIGOLD COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities 790 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 40 Gain on Sale of Investments -80 Increase in Accounts Receivable -430 Decrease in Inventory 300 Increase in Accrued Liabilities Payment of Cash Dividends Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets