E23-14B (L02,3) (SCFDirect Method) Jackson Ski Haus had the following statements prepared as of December 31, 2017. JACKSON SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31 2017 2016 Cash $ 2,500 $ 4,000 Accounts receivable 103,000 97,000 Short-term investments (Available-for-sale) 96,000 121,000 Inventories 91,000 54,000 Prepaid insurance 4,000 6,000 Ski equipment 89,000 43,000 Accumulated depr.equipment (23,500) (18,000) Trademarks 79,000 83,000 Total assets $441,000 $390,000 Accounts payable $ 92,200 $ 75,000 Income taxes payable 21,800 15,700 Wages payable 4,000 9,000 Short-term loans payable to bank 23,500 0 Long-term loans payable 75,000 125,000 Common stock, $1 par 100,000 100,000 Additional paid-in capital 20,000 20,000 Retained earnings 104,500 45,300 Total liabilities & equity $441,000 $390,000 JACKSON SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales $540,200 Cost of goods sold 302,000 Gross margin 238,200 Operating expenses 94,000 Operating income 144,200 Interest expense $20,500 Loss on sale of equipment 4,000 24,500 Income before income tax 119,700 Income tax expense 40,500 Net income $ 79,200 Additional information: 1. Dividends in the amount of $20,000 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses. 3. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2017. Instructions Prepare a statement of cash flows using the indirect method.