Example 2: GORNI COMPANY Comparative Balance Sheet December 31 2017 Assets Cash $ 70,000 Accounts Receivable 82,000 Inventories 120,000 Prepaid Expenses 19,000 Unvestments 80,000 Plant Assets 310,000 Accumulated Depreciation (65,000 Total $616.000 Liabilities and Stockholders' Equity Accounts Payable $ 85,000 Accrued Expenses Payable 22,000 Bonds Payable 130,000 Veommon Stock 245.000 Retained Earnings 134.000 Total $616.000 2016 $ 35,000 3500 53,000 1 19006 132,000 J 12006 25,000 6000 65,000 or 15690 250,000 T boom (60,000) Stod $500.000 $ 75,000 on 24,000 2000 150,000 J, 2000 170,000 175001 81.000 3300 $500.000 1340b 8100 3007 $480,000 GORNI COMPANY Income Statement For the Year Ended December 31, 2017 Sales Less: Cost of Goods Sold $290,000 Operating Expenses (Excluding Depreciation) 60,000 Depreciation Expense 17,000 Income Taxes 15,000 Interest Expense 13,000 Loss on Disposal of Plant Assets 8,000 Net income 403,000 $ 77,000 Additional information: 1. New plant assets costing $85,000 were purchased for cash in 2017. 2. Old plant assets costing $25,000 were sold for $5,000 cash when book value was $13,000. 3. Bonds with a face value of $20,000 were converted into $20,000 of common stock. 4. A cash dividend was declared and paid during the year. Instructions Prepare a statement of cash flows for the year using the indirect method. Sot