Condensed financial data of Saffordville Company are shown below.

Additional information:

1. New equipment costing $146,000 was purchased for cash during the year.

2. Investments were sold at cost.

3. Equipment costing $36,000 was sold for $15,000, resulting in a gain of $5,000.

4. A cash dividend of $48,000 was declared and paid during the year.

Instructions

Prepare a statement of cash flows using the indirect method.

SAFFORDVILLE COMPANY Comparative Balance Sheets December 31 Assets 2017 Cash $102,700 Accounts receivable 60,800 Inventory 126,900 Investments 79,500 Equipment 315,000 Accumulated depreciation equipment (44,500) Total $640,400 2016 $ 33,400 37,000 102,650 107,000 205,000 (40,000) $445,050 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 57,700 15,100 145,000 250,000 172,600 $640,400 $ 48,280 18,830 70,000 200,000 107,940 $445,050 SAFFORDVILLE COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue Gain on disposal of plant assets $297,500 5,000 302,500 $99,460 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Net income 19,670 30,500 37,270 2,940 189,840 $112,660 SAFFORDVILLE COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Total of 1st col Net Cash Provided by Operating Activities 95,800 Net Inc - 1st Col Tt Cash Flows from Investing Activities: Net Cash Used by Investing Activities Cash Flows from Financing Activies: Net Cash Provided by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period