Homework #2 (Handwritten solution due on July 18, 2020. Follow submission instructions on syllabus) Question 2: The Sage Corporation prepared, for 2017 and 2016, the following balance sheet data: December 31 2017 2016 Cash $ 87,375 $ 63,750 Available-for-sale securities (not cash equivalents) 17,250 105,000 Accounts receivable 90,000 86,250 Merchandise inventory 187,500 163,500 Prepaid insurance 1,125 1,500 Land, buildings, and equipment 1,378,875 1,087,500 Accumulated depreciation (558.750 (498.750) Total S1.203.375 $1.008.750 Accounts payable Salaries payable ... Notes payable--bank (current) Bonds payable Common stock Retained earnings (deficit) Total S 153,375 18,750 37,500 375.000 600,000 18.750 $1.203.375 $ 236,250 26,250 150,000 0 600,000 (3.750 $1.008.750 ******* Additional information: Sold available-for-sale securities (not cash equivalents) costing $87,750 for $90,000. (b) Equipment costing $18,750 with a book value of $3,750 was sold for $4,500. (c) Issued 8% bonds payable at par, $375,000. (d) Purchased new equipment for cash, $310,125. (e) Paid cash dividends of $22,500 during the year. (1) Net income for 2017 was $45,000. Proceeds from the notes payable were used for operating purposes. M Prepare a cash flow statement for Sage Corporation for 2017, using the indirect method