E5-16B (LO5,6) (Preparation of a Statement of Cash Flows) A comparative balance sheet for Gokhale Corporation is presented below December 31 Assets Cash Accounts receivable Inventories Land Equipment Accumulated depreciation-equipment 2017 2016 $109,500 123,000 270,000 106,500 390,000 $33,000 99,000 283,500 165,000 300,000 (103,500)(63,000) $817,500 Total Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock ($1 par) Retained earnings $895,500 $ 70,500 300,000 246,000 201,000 $817,500 51,000 225,000 321,000 298,500 $895,500 Total Additional information: 1. Net income for 2017 was $187,500 2. Cash dividends of $90,000 were declared and paid 3. Bonds payable amounting to $75,000 were retired through issuance of common stock. 4. Land was sold for cost 5. Equipment was purchased but no equipment was sold