Exercise 23-14 Indigo Inc., a greeting card company, had the following statements prepared as of December 31, 2017 INDIGO 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 $7,000 51,400 35,400 17,800 60,400 3,900 155,300 131,000 $5,900 61,500 39,900 4,900 (34,700) (25,200 ) 45,900 49,900 $314,100 $296,200 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 $46,500 $39,600 5,900 4,100 9,900 68,600 100,000 100,000 30,000 38,100 $314,100 $296,200 4,100 8,100 8,000 60,600 30,000 56,800 INDIGO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods solod Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $335,275 173,900 161,375 121,000 40,375 $11,500 9,500 30,875 6,175 $24,700 2,000 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. Eg pment that had a cost of $19.900 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