Exercise 23-14 Blue Inc., a greeting card company, had the following statements prepared as of December 31, 2017 BLUE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable $5,900 $7,000 51,500 Short-term debt investments (available-for-sale 34,700 17,900 39,700 60,400 4,100 154,300 130,500 62,000 Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 4,900 (35,300) (25,200) 49,700 $311,800 $295,900 45,600 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 $40,400 6,000 3,900 9,900 69,300 100,000 100,000 30,000 30,000 36,400 $311,800 $295,900 4,000 8,100 8,000 60,200 55,300 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 Gain on sale of equipment Income before tax Income tax expense Net income $335,600 174,600 161,000 120,700 40,300 $11,400 2,100 9,300 31,000 6,200 $24,800 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 expenses 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 2017 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) BLUE INC. Statement of Cash Flows Adjustments to reconcile net income to