Exercise 23-14 Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2017 FLINT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $6,100 $7,100 51,000 17,900 59,900 4,000 155,200 129,900 61,500 34,800 39,800 5,000 (35,200) (24,800) 45,800 49,800 $313,000 $294,800 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 $45,800 $39,800 6,000 3,900 9,900 68,900 100,000 100,000 30,000 36,300 $313,000 $294,800 4,100 7,900 8,000 60,100 30,000 57,100 FLINT 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 $338,200 174,500 163,700 120,800 42,900 $11,400 2,000 9,400 33,500 6,700 $26,800 Additional information 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 $20,200 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).)