Exercise 23-13 Tamarisk Inc., a greeting card company, had the following statements prped as of December 31, 2017 TAMARISK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,100 $7,000 51,500 17,900 60,500 3,900 153,200 131,200 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 62,200 34,900 40,300 5,000 (35,000) (24,700) 46,200 49,800 $312,900 $297,100 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 $46,000 $40,000 6,000 4,000 10,100 69,200 100,000 100,000 30,000 37,800 $312,900 $297,100 4,000 7,900 8,100 59,800 30,000 57,100 TAMARISK INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $336,150 174,100 162,050 120,800 41,250 $11,400 1,900 9,500 31,750 6,350 $25,400 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses. .No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,200 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).)