Condensed financial data of Sarasota SA follow. SARASOTA SA Comparative Statements of Financial Position December 31 Assets Equipment Accumulated depreciation-equipment Long-term investments Prepaid expenses Inventory Accounts receivable Cash Total 2017 2016 265,510 241,720 (46,940) (51,570) 140,610 113,340 29,120 25,800 111,230 101,300 92,250 33,860 118,700 48,780 710,480 513,230 Equity and Liabilities Share capital-ordinary 220,190 174,810 Retained earnings 249,960 104,560 Bonds payable 112,250 149,360 Accounts payable 111,890 67,020 Accrued expenses payable 16,190 17,480 Total 710,480 513,230 Sales revenue SARASOTA SA Income Statement For the Year Ended December 31, 2017 Gain on disposal of plant assets Less: 391,080 7,400 398,480 Cost of goods sold 135,770 Operating expenses, excluding depreciation 11,530 Depreciation expense 45,770 Income tax expense 27,190 Interest expense Net income 4,080 224,340 174,140 Additional information: 1. New equipment costing 79,390 was purchased for cash during the year. 2. Old equipment having an original cost of 55,600 and accumulated depreciation of 50,400 was sold for 12,600 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of 28,740 was declared and paid during the year. 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).) Adjustments to reconcile net income to SARASOTA SA Statement of Cash Flows