Dowling Company Comparative Balance Sheet December 31, 2017 and 2016 2016 2017 ASSETS $ 140,350 95,300 165,200 6,240 35,700 75,000 375,000 _(71,300) 428,300 Accumulated depreciation-machinery & equipment(148,500) 58,000 $ 95,900 102,300 157,900 5,860 84,700 90,000 260,000 (58,300) 428,300 (138,000) 65,000 Cash Accounts receivable (net) Inventories Prepaid expenses Investments (long-term) Land Buildings Accumulated depreciation-buildings Machinery and equipment Patents Total assets $1,159,290 $1,093,660 LIABILITIES AND STOCKHOLDERS' EQUITY $ 43,500 14,000 7,900 14,000 40,000 150,000 450,000 66,250 373,640 $ 46,700 12,500 8,400 10,000 Accounts payable(merchandise creditors) Accrued expenses (operating expenses) Income taxes payable Dividends payable Mortgage note payable, due 2021 Bonds payable Common stock, $30 par Additional paid in capital-common stock Retained earnings 250,000 375,000 41,250 349,810 Total liabilities and stockholders' equity $1,159,290 $1,093,660 Dowling Company Income Statement For the year Ending December 31, 2017 $1,100,000 710,000 Sales Cost of merchandise sold $ 390,000 Gross profit Operating expenses: Depreciation expense Patent amortization $23,500 7,000 196,000 Other operating expenses Total operating expenses 226,500 $ 163,500 Income from operations Other income: Gain on sale of investments Other expense: Interest expense $ 11,000 (15,000) 26,000 $ 148,500 50,000 Income before income tax Income tax expense Net income 98,500 Prepare a Cash Flow Statement for the year ending December 31, 2017