GAUDETTE COMPANY Balance Sheet December 31 Assets 2017 2016 Retained earnings 33,000 28,000 Total $135,00 $126,00 0 0 GAUDETTE COMPANY Income Statement For the Year Ended December 31, 2017 Sales $286,000 Cost of goods sold 194,000 Gross profit 92,000 Selling expenses $28,00 0 Administrative expenses 9,000 37,000 Profit from operations 55,000 Interest expense 7,000 Profit before income 48,000 taxes Income tax expense 10,000 Profit $ 38,000 Additional information: 1. Dividends of $33,000 were declared and paid. Gaudette reports under ASPE. 2. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 originally and had a carrying value of $10,000 at the time of sale. . 3.All depreciation expense, $6,000, is in the selling expense category. 4.All sales and purchases are on account. 5.Additional equipment was purchased for $5,000 cash. Instructions (a) Prepare a statement of cash flows using the indirect method