Dowling Company Comparative Balance Sheet December 31, 2016 and 2015 Assets 2010 2015 Cash Accounts receivables (net) Inventories Prepaid expenses Investments (long-term) Land Buildings Accumulated depreciation - Building Machinery and equipment Accumulated depreciation - machinery and equipment Patents Total Assets Liabilities and Stockholders' Equity Accounts payables (merchandise creditors) Accrued expenses payable (operating expenses) Income taxes payable Dividends payable 8,400Mortgage notes payable, due 2023 Bonds payable Common stock, $30 par Excess of issue price over par - common stock Retained earnings Total Liabilities and Stockholders' Equity 140,350 95,300 165,200 6,240 35,700 75,000 375,000 71,300 428.300 (148,500) 58,000 1.159.290 95,900 + 102,300 157,900 5,860 84,700 90,000 260,000 (58,300) 428,300 (138,000) 65,000 1.093,660 46,700 12,500 8,400 10,000 0 43,500 14.000 7,900 14,000 40.000 150,000 450.000 66,250 373,640 1.159.290 250,000 375,000 41.250 349,810 1,093,660 Dowling Company Income Statement For the year ended December 31, 2016 Sales | 1,100,000 Cost of merchandise sold 710,000 Gross Profit 390,000 Operating Expenses: Depreciation expenses 23,500 Patent amortization 7,000 Other operating expenses 196.000 Total operating expenses 226,500 Income from Operations 163,500 Other Income: Gain on sale of investments 11.000 Other expenses: Interest expense 26.000 (15,000 Income before income tax 148,500 Income tax expense 50,000 Net Income 98,500 An examination of the accounting records revealed the following additional information applicable to 2016: a) Land costing $15,000 was sold for $15,000 b) A mortgage note was issued for $40,000 c) A building costing $115,000 was constructed d) 2,500 shares of common stock were issued at $40 in exchange for the bonds payable e) Cash dividends declared were $74,670 Instruction: Use the above information to complete the statement of cash flow using the indirect and direct methods