Exercise 23-13 Blue Inc., a greeting card company, had the following statements prepared as of December 31, 2017. Cash BLUE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation-equipment (34,900) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 BLUE INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,300 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $337,675 175,500 162,175 119,500 42,675 9,300 33,275 6.675 $26.700 Additional information: Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $45,900 4,000 3.100 8,000 60,500 100,000 30,000 55,700 $312,200 $39,900 6,000 3,900 10,000 68,500 100,000 30,000 35,000 $293,300 1. Dividends in the amount of $6,000 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis e.g. (15,000).) BLUE INC. Statement of Cash Flow She godono ad the reas of December 31.20 COMPARATIVE BALANCE SHEET 12/21/17 12/21/16 $212.200 $223.230 S Courie pavable home table i payabia Shaman poble 60,50 900.000 R500 .000 C ock. $0 por Corbud capital costock Natarde Total habituatockholders' equity INCOHE STATEMENT FOR THE YEAR ENDING BRABER 31, 2017 $11.900 Adderal Internation: 1. Dividence in the mount of $.000 vendedores and said during 2017 3. D es tion p led in operating pera 2. hc uerales para a cara med on the during the v 1. B ent that led 20.00) and 14 dec 2017 Pro t ococh