Exercise 23-14 Teal Inc., a greeting card company, had the following statements prepared as of December 31, 2017. TEAL INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $6,900 Accounts receivable 61,400 51,200 Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 Equipment 152,700 130,200 Accumulated depreciation-equipment (35,400 ) (25,000 ) Copyrights 45,700 49,900 Total assets $310,200 $295,000 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 $46,300 3,900 8,100 8,100 60,200 100,000 30,000 53,600 $40,400 6,000 3,900 10,100 69,400 100,000 30,000 35,200 Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity 100,000 100,000 30,000 30,000 53,600 35,200 $310,200 $295,000 "E TEAL INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,400 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $335,075 175,200 159,875 120,100 39,775 9,400 30,375 6,075 $24,300 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 $20,100 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 as A 100 20 AS TEAL INC. Statement of Cash Flows Adjustments to reconcile net income to $ 20 x wip 20 E $ Show Work is REQUIRED for this question: Open Show Work Question Attempts: 0 of 1 used