Exercise 23-13 Cullumber Inc., a greeting card company, had the following statements prepared as of December 31, 2017 CULLUMBER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 40,400 59,600 Prepaid rent 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciation equipment (35,300 ) (25,100) Copyrights 46,000 50,000 Total assets $312,800 $295,300 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 $46,200 3,900 7,900 8,000 59,900 100,000 30,000 56,900 $312,800 $39,700 6,100 4,000 10,100 68,300 100,000 30,000 37,100 $295,300 CULLUMBER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 CULLUMBER 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 $334,625 174,300 160,325 118,900 41,425 9,300 32,125 6,425 $25,700 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expens 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during Prepare a statement of cash flows using the direct method. (Show amounts that d CULLUMBER INC. Statement of Cash Flows Prepare a statement of cash flows using the direct method. (Show amounts that dec CULLUMBER INC. Statement of Cash Flows