Condensed financial data of Skysong Company for 2017 and 2016 are presented below. SKYSONG COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,760 $1,130 Receivables 1,740 1,270 Inventory 1,640 1,880 Plant assets 1,890 1,700 Accumulated depreciation (1,280) (1,150) Long-term investments (held-to-maturity) 1,280 1,400 $7,030 $6,230 Accounts payable $1,200 $920 Accrued liabilities 190 260 Bonds payable 1,380 1,520 Common stock 1,870 1,660 Retained earnings 2,390 1,870 $7,030 $6,230 SKYSONG COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,970 Cost of goods sold 4,780 Gross margin 2,190 Selling and administrative expenses 930 Income from operations 1,260 Other revenues and gains Gain on sale of investments 70 Income before tax 1,330 Income tax expense 550 Net income 780 Cash dividends 260 Income retained in business $520 Additional information: During the year, $80 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 a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) SKYSONG COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income 780 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Gain on Sale of Investments (70) Depreciation Expense Depreciation Expense 130 130 Increase in Accounts Receivable (470) Decrease in Inventory 240 Increase in Accounts Payable 280 Decrease in Accrued Liabilities (70)] (70) 40 Net Cash Provided by Operating Activities 820 Cash Flows from Investing Activities Purchase of Plant Assets Purchase of Plant Assets (110) Sale of Investments 190 Net Cash Provided by Investing Activities v (80) Cash Flows from Financing Activities v Redemption of Bonds Payable (140) Issuance of Capital Stock (130) Payment of Cash Dividends y (260) Net Cash Used by Financing Activities v (530) Net Increase in Cash 210 Cash at Beginning of Period v 1,130 Cash at End of Period $ 1,760