). Given the following income statement and comparative balance sheets for Illinois Corp. (NOTE THAT 2016 IS LISTED FIRST):

Comparative Balance Sheets

December 31

2016 2017

Cash .......................... $ 1,100 $ 1,600

Accounts Receivable............ 2,000 2,750

Inventory...................... 1,300 2,500

Prepaid insurance ............. 2,800 3,200

Land ......................... 5,400 1,000

Buildings & Equip (net)........ 28,000 44,800

Investment 14,500 14,500

TOTAL ................... $55,100 $70,350

Accounts Payable .............. 1,600 2,200

Notes Payable (trade).......... 2,000 2,500

Long-term Notes Payable 4,000

Bonds Payable (long term).......... 10,000 10,000

Premium on Bonds Payable...... 400 300

Common Stock .................. 32,000 38,300

Retained earnings ............. 9,100 13,050

TOTAL $55,100 $70,350

Income Statement for 2017

Sales revenue $ 24,900

Cost of goods sold (14,000)

Depreciation expense - equipment (1,700)

Insurance expense (500)

Interest expense (600)

Income tax expense (200)

Other operating expenses (all cash) (900)

Loss on sale of land (400)

Net income $ 6,600

Additional information for 2017:

1. The only activities in retained earnings were for income and dividends

(calculate the dividends using the standard retained earnings formula).

These trade N/P should be treated like accounts payable in all calculations.

2. A building was purchased for $12,500 cash.

3. Another building was purchased with a long-term note of $4,000.

4. Land with a cost of $4,400 was sold for cash at a loss $400 (you will need to calculate the amount of cash received).

5. Equipment was purchased for $2,000 cash.

6. A cash payment of $3,500 was made on the notes payable. This note is short-term, and is used to assist in purchasing inventory. (Treat just like accounts payable in your cash flow calculations).

7. The change in common stock was due to the issue of no-par stock for cash.

Prepare the Statement of Cash Flows for Illinois Corp. (using the indirect method for the operating section. Any supplementary material should be placed at the bottom of the page, after the statement.