der2971 page/612 a Lo2 P12-3A. Statement of Cash Flows (Indirect Method) The Dairy Company's income statement and come parative balance sheets as of December 31 of 2016 and 2015 follow: DAIRY COMPANY Income Statement For the Year Ended December 31, 2016 Sales revenue. ... S700,000 Cost of goods sold................. $60,000 Wages and other operating expenses.... ................... 95,000 Depreciation expense............................................. 22,000 Goodwill amortization oxponse..... 7,000 Interest expense. ...... ............ 10,000 Income tax expense, .......... .............. 36,000 Loss on bond retirement ....... 5,000 635,000 Net income. . . . $ 65,000 Chapter 12 tatent of Cash Flows