Farley inc.s comparative balance shee

io Cash Flow Statement Farley Inc.'s Comparative Balance Sheets for 2017 and 2016 and Income Statement presented below. for 2017 are Farley Ine Comparative Balance Sheets December 31, 2013 and 2012 (S in 000s) Assets Cash Accounts Receivable Inventory Land Building Less: Accum. Depreciation Equipment Less: Accum. Depreciation Patent 2017 2016 $ 1 750 1,200 900 1,800, 1,050 1,350v, 1,200 1,800 1,800 (600), 5,700 4,500 (1,050) (960) 3.000 $13,800 $11,700 Liabilities Accounts Payable Accrued Expenses Payable Note Payable-Land Stockholders' Equity Common Stock Paid-In Capital in Excess of Par Retained Earnings S 1,500S 900 600 450 3000 6,300v 6,000 3600 3,000 1,35 S13,800 $11,700 Farley Inc. Income Statement For Year Ended December 31, 2017 (S in 000s) Revenues and Gains Sales Revenue Gain on Sale of Land Total Revenues and Gains $5,290 $5,470 Expenses and Losses Cost of Goods Sold Depreciation Exp.-Building Depreciation Exp.- Equipment Loss on Sale of Equipment Amortization Expense Operating Expenses Total Expenses and Losses $1,2 60 600 000 3.520 Net Income $1,950 Additional information from the accounting records: During 2017, equipment with a cost of S600,000 (90% depreciated) was sold. The statement of retained earnings reveals reductions for both stock and cash dividends. The stock dividends were $450,000. I. 2. 3. A note payable was issued for the purchase of land. Instructions: a. b. Prepare a cash flow statement using the direct method. Reconcile net income to cash (indirect method)