I. Prepare a statement of cash flow on both a direct and indirect basis
			2017	2016	Change
	Assets:
	Cash		215,000	70,000	145,000
	Accounts receivable, net		87,000	55,000	32,000
	Inventory		74,000	60,000	14,000
	Prepaid expenses		12,000	20,000	-8,000
	Investments		70,000	80,000	-10,000
	Property, plant & equipment		750,000	550,000	200,000
	Accumulated depreciation		-90,000	-70,000	-20,000
	Patents		6,000	10,000	-4,000
	Total Assets		1,124,000	775,000	349,000
	Liabilities & Equity
	Accounts payable		37,000	50,000	-13,000
	Accrued liabilities		26,000	40,000	-14,000
	Taxes payable		18,000	4,000	14,000
	Long-term Notes Payable		100,000	-	100,000
	Common stock		200,000	200,000	0
	Additional paid in capital		336,000	286,000	50,000
	Retained earnings		407,000	195,000	212,000
	Total liabilities and equity		1,124,000	775,000	349,000
	Sales		1,450,000
	Cost of goods sold		780,000
	Gross profit		670,000
	Operating expenses		290,000
	Pre-tax Operating income		380,000
	Gain on sale of investments		6,000
	Gain on sale of equipment		4,000
	Pre-tax income		390,000
	Income taxes		78,000
	Net income		312,000
	a. Stock option expense of $50,000 was recognized in 2017
	b. Equipment of $210,000 was purchased using $100,000 note payable and cash
	c. Equipment with cost of $10,000 and book value of $5,000 was sold for $9,000
	d. Investments with a cost of $10,000 were sold for $16,000