Egon Castle Corp Statement of Cash Flows ( Indirect Approach ) For the year ending December 31 , 2016 Cash flows from operating activities : Net income 4 3 3 325 Add ( deduct ) noncash effects on operating income Depreciation expense Change in accounts receivable Change in inventory Change in prepaid insurance Change in accounts payable Change in accrued liabilities Change in income taxes payable Net cash provided by operating activitie Cash flows from investing activities Purchase of equipment Net cash used by investing activitie Cash flows from financing activities : Proceeds from issuing stock Dividends on common Net cash provided by financing activities Net change in cash Cash balance at January 1 , 2016 Cash balance at December 31 2016(12 points) Using the indirect approach, prepare a statement of cash flows for Egon Castle Corp for the year ending December 31, 2016. See template on next page. Egon Castle 's 2016 income statement revealed sales of $1,400,000; EBITDA margin of 18%; interest expense of $22,000; and an effective tax rate of 24%. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash. Comparative balance sheets for Egon Castle follow. (All Amounts in 000s) 2016 2015 Assets Cash XXX $ 470,000 Accounts receivable 180,000 70,000 Inventories 240,000 280,000 Prepaids 12,000 XXX Land 250,000 250,000 Building and equipment 1,500,000 1,300,000 Less: Accumulated depreciation (205,000) (175,000) Total assets XXX $ 2,208,300 Liabilities Accounts payable XXX $ 92,000 Accrued liabilities 11,000 15,000 Income taxes payable 24,000 XXX Stockholders' equity Common stock 610,000 700,000 Paid in capital in excess of par 990,000 800,000 Retained earnings 640,000 585,350 Total liabilities and equity $ 2,600,000 XXX