Indigo Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

INDIGO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
12/31/17	12/31/16
Cash	$5,900	$7,000
Accounts receivable	62,000	51,500
Short-term debt investments (available-for-sale)	34,700	17,900
Inventory	39,700	60,400
Prepaid rent	4,900	4,100
Equipment	154,300	130,500
Accumulated depreciationequipment	(35,300	)	(25,200	)
Copyrights	45,600		49,700
Total assets	$311,800		$295,900
Accounts payable	$46,200	$40,400
Income taxes payable	4,000	6,000
Salaries and wages payable	8,100	3,900
Short-term loans payable	8,000	9,900
Long-term loans payable	60,200	69,300
Common stock, $10 par	100,000	100,000
Contributed capital, common stock	30,000	30,000
Retained earnings	55,300		36,400
Total liabilities & stockholders equity	$311,800		$295,900

INDIGO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017
Sales revenue	$335,600
Cost of goods sold	174,600
Gross profit	161,000
Operating expenses	120,700
Operating income	40,300
Interest expense	$11,400
Gain on sale of equipment	2,100	9,300
Income before tax	31,000
Income tax expense	6,200
Net income	$24,800

Additional information:

1.	Dividends in the amount of $5,900were declared and paid during 2017.
2.	Depreciation expense and amortization expense are included in operating expenses.
3.	No unrealized gains or losses have occurred on the investments during the year.
4.	Equipment that had a cost of $19,800and was 70% depreciated was sold during 2017.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

INDIGOINC. Statement of Cash Flows December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Purchase of EquipmentIncrease in Salaries and Wages PayableDecrease in InventoriesAmortization of CopyrightDecrease in Prepaid RentPurchase of InvestmentsPrincipal Payment on Short-term LoanIncrease in Accounts PayableGain on Sale of EquipmentSale of EquipmentIncrease in Income Taxes PayableDividend PaymentsIncrease in Accounts ReceivableLoss on Sale of EquipmentDecrease in Accounts PayableDecrease in Salaries and Wages PayableIncrease in Prepaid RentDecrease in Accounts ReceivableDecrease in Income Taxes PayablePrincipal Payment on Long-term LoanNet IncomeDepreciation ExpenseIncrease in Inventories	$
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in InventoriesPurchase of EquipmentDecrease in Prepaid RentGain on Sale of EquipmentSale of Available-for-Sale InvestmentsBorrowing on Long-Term LoanDecrease in Salaries and Wages PayableNet IncomeIncrease in Salaries and Wages PayableIncrease in Prepaid RentIncrease in Accounts ReceivableDecrease in Accounts ReceivablePurchase of InvestmentsDepreciation ExpenseDecrease in Income Taxes PayableAmortization of CopyrightIncrease in Income Taxes PayableSale of EquipmentPrincipal Payment on Short-term LoanLoss on Sale of EquipmentDecrease in InventoriesIncrease in Accounts PayableDecrease in Accounts PayablePrincipal Payment on Long-term LoanDividend PaymentsBorrowing on Short-Term Loan	$
Principal Payment on Short-term LoanIncrease in Accounts PayableSale of EquipmentDepreciation ExpenseAmortization of CopyrightDecrease in Prepaid RentGain on Sale of EquipmentDecrease in Accounts ReceivableBorrowing on Long-Term LoanSale of Available-for-Sale InvestmentsDecrease in Accounts PayableLoss on Sale of EquipmentNet IncomeDecrease in InventoriesPurchase of EquipmentPurchase of InvestmentsIncrease in InventoriesIncrease in Salaries and Wages PayableDecrease in Salaries and Wages PayableIncrease in Accounts ReceivableIncrease in Income Taxes PayableIncrease in Prepaid RentDecrease in Income Taxes PayablePrincipal Payment on Long-term LoanDividend PaymentsBorrowing on Short-Term Loan
Sale of Available-for-Sale InvestmentsLoss on Sale of EquipmentIncrease in Accounts ReceivablePurchase of EquipmentDecrease in Prepaid RentDecrease in InventoriesIncrease in InventoriesPurchase of InvestmentsBorrowing on Long-Term LoanIncrease in Accounts PayableGain on Sale of EquipmentIncrease in Salaries and Wages PayableBorrowing on Short-Term LoanDecrease in Income Taxes PayablePrincipal Payment on Short-term LoanDecrease in Accounts ReceivableDecrease in Salaries and Wages PayableDepreciation ExpenseDecrease in Accounts PayableIncrease in Prepaid RentIncrease in Income Taxes PayableNet IncomeAmortization of CopyrightDividend PaymentsSale of EquipmentPrincipal Payment on Long-term Loan
Decrease in Accounts PayableDecrease in Prepaid RentDividend PaymentsSale of Available-for-Sale InvestmentsDecrease in InventoriesIncrease in Prepaid RentDecrease in Salaries and Wages PayableDepreciation ExpenseBorrowing on Short-Term LoanGain on Sale of EquipmentIncrease in Accounts ReceivableAmortization of CopyrightDecrease in Accounts ReceivableDecrease in Income Taxes PayableIncrease in Accounts PayableIncrease in InventoriesLoss on Sale of EquipmentIncrease in Salaries and Wages PayableIncrease in Income Taxes PayableSale of EquipmentPrincipal Payment on Short-term LoanBorrowing on Long-Term LoanNet IncomePurchase of EquipmentPurchase of InvestmentsPrincipal Payment on Long-term Loan
Dividend PaymentsAmortization of CopyrightIncrease in Prepaid RentGain on Sale of EquipmentIncrease in Salaries and Wages PayableBorrowing on Short-Term LoanIncrease in Accounts ReceivableDecrease in Salaries and Wages PayableDepreciation ExpenseBorrowing on Long-Term LoanIncrease in InventoriesSale of Available-for-Sale InvestmentsLoss on Sale of EquipmentDecrease in Prepaid RentDecrease in InventoriesIncrease in Accounts PayablePrincipal Payment on Short-term LoanPrincipal Payment on Long-term LoanDecrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Income Taxes PayablePurchase of InvestmentsNet IncomeIncrease in Income Taxes PayableSale of EquipmentPurchase of Equipment
Decrease in Salaries and Wages PayableDecrease in InventoriesIncrease in Accounts PayableDecrease in Accounts PayableDividend PaymentsDepreciation ExpenseIncrease in InventoriesDecrease in Prepaid RentIncrease in Prepaid RentBorrowing on Short-Term LoanSale of Available-for-Sale InvestmentsIncrease in Salaries and Wages PayableIncrease in Income Taxes PayableSale of EquipmentIncrease in Accounts ReceivableDecrease in Accounts ReceivableBorrowing on Long-Term LoanGain on Sale of EquipmentNet IncomeDecrease in Income Taxes PayablePurchase of EquipmentPurchase of InvestmentsPrincipal Payment on Long-term LoanPrincipal Payment on Short-term LoanAmortization of CopyrightLoss on Sale of Equipment
Increase in Accounts PayableIncrease in Accounts ReceivableLoss on Sale of EquipmentPurchase of InvestmentsPrincipal Payment on Short-term LoanDecrease in Accounts PayableAmortization of CopyrightIncrease in Salaries and Wages PayableIncrease in Income Taxes PayableDecrease in Salaries and Wages PayableIncrease in Prepaid RentSale of Available-for-Sale InvestmentsNet IncomeDepreciation ExpenseDecrease in InventoriesGain on Sale of EquipmentPurchase of EquipmentDecrease in Prepaid RentIncrease in InventoriesDecrease in Accounts ReceivableDecrease in Income Taxes PayablePrincipal Payment on Long-term LoanDividend PaymentsBorrowing on Short-Term LoanSale of EquipmentBorrowing on Long-Term Loan
Increase in Income Taxes PayableDecrease in InventoriesPurchase of EquipmentLoss on Sale of EquipmentPurchase of InvestmentsDecrease in Accounts ReceivableAmortization of CopyrightDecrease in Salaries and Wages PayableSale of EquipmentIncrease in Accounts PayableIncrease in InventoriesDepreciation ExpenseIncrease in Accounts ReceivablePrincipal Payment on Short-term LoanBorrowing on Short-Term LoanDecrease in Prepaid RentNet IncomeDecrease in Income Taxes PayablePrincipal Payment on Long-term LoanDividend PaymentsBorrowing on Long-Term LoanGain on Sale of EquipmentIncrease in Salaries and Wages PayableDecrease in Accounts PayableSale of Available-for-Sale InvestmentsIncrease in Prepaid Rent
Loss on Sale of EquipmentDepreciation ExpenseDecrease in InventoriesIncrease in InventoriesDecrease in Accounts ReceivableAmortization of CopyrightPurchase of EquipmentIncrease in Salaries and Wages PayableDecrease in Accounts PayableGain on Sale of EquipmentDecrease in Salaries and Wages PayableIncrease in Prepaid RentIncrease in Accounts PayableDecrease in Prepaid RentPurchase of InvestmentsDividend PaymentsBorrowing on Long-Term LoanIncrease in Accounts ReceivableSale of Available-for-Sale InvestmentsNet IncomePrincipal Payment on Short-term LoanDecrease in Income Taxes PayableIncrease in Income Taxes PayableSale of EquipmentPrincipal Payment on Long-term LoanBorrowing on Short-Term Loan
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Borrowing on Short-Term LoanDepreciation ExpenseIncrease in Income Taxes PayableIncrease in InventoriesIncrease in Salaries and Wages PayableGain on Sale of EquipmentIncrease in Accounts ReceivableBorrowing on Long-Term LoanPurchase of InvestmentsSale of EquipmentPurchase of EquipmentPrincipal Payment on Short-term LoanPrincipal Payment on Long-term LoanSale of Available-for-Sale InvestmentsDecrease in Accounts PayableDecrease in Accounts ReceivableLoss on Sale of EquipmentAmortization of CopyrightDecrease in Income Taxes PayableDividend PaymentsDecrease in Prepaid RentDecrease in Salaries and Wages PayableDecrease in InventoriesIncrease in Accounts PayableNet IncomeIncrease in Prepaid Rent
Increase in InventoriesDecrease in InventoriesDecrease in Accounts PayablePrincipal Payment on Short-term LoanDecrease in Accounts ReceivablePurchase of EquipmentPurchase of InvestmentsIncrease in Salaries and Wages PayableDividend PaymentsDepreciation ExpenseIncrease in Accounts PayableBorrowing on Long-Term LoanIncrease in Income Taxes PayablePrincipal Payment on Long-term LoanBorrowing on Short-Term LoanLoss on Sale of EquipmentNet IncomeDecrease in Salaries and Wages PayableAmortization of CopyrightSale of Available-for-Sale InvestmentsIncrease in Prepaid RentGain on Sale of EquipmentDecrease in Prepaid RentIncrease in Accounts ReceivableDecrease in Income Taxes PayableSale of Equipment
Borrowing on Long-Term LoanBorrowing on Short-Term LoanLoss on Sale of EquipmentAmortization of CopyrightIncrease in Accounts ReceivableDecrease in Accounts PayableDecrease in Accounts ReceivableDividend PaymentsIncrease in Salaries and Wages PayableDepreciation ExpensePurchase of InvestmentsSale of Available-for-Sale InvestmentsIncrease in InventoriesNet IncomeGain on Sale of EquipmentDecrease in Income Taxes PayableDecrease in InventoriesDecrease in Salaries and Wages PayableIncrease in Prepaid RentIncrease in Accounts PayableIncrease in Income Taxes PayablePurchase of EquipmentDecrease in Prepaid RentSale of EquipmentPrincipal Payment on Short-term LoanPrincipal Payment on Long-term Loan
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in Income Taxes PayableGain on Sale of EquipmentSale of EquipmentIncrease in Salaries and Wages PayableDecrease in Accounts ReceivableIncrease in Prepaid RentPrincipal Payment on Short-term LoanBorrowing on Long-Term LoanPurchase of EquipmentPurchase of InvestmentsIncrease in Accounts ReceivableIncrease in InventoriesDecrease in Prepaid RentLoss on Sale of EquipmentPrincipal Payment on Long-term LoanDecrease in Income Taxes PayableDividend PaymentsDecrease in Salaries and Wages PayableBorrowing on Short-Term LoanIncrease in Accounts PayableSale of Available-for-Sale InvestmentsNet IncomeDecrease in Accounts PayableDepreciation ExpenseAmortization of CopyrightDecrease in Inventories
Increase in Income Taxes PayableSale of EquipmentDecrease in Accounts PayablePrincipal Payment on Short-term LoanDividend PaymentsDepreciation ExpenseIncrease in Accounts ReceivableIncrease in Accounts PayableIncrease in Prepaid RentBorrowing on Long-Term LoanDecrease in Prepaid RentPurchase of EquipmentIncrease in InventoriesPurchase of InvestmentsPrincipal Payment on Long-term LoanDecrease in Accounts ReceivableBorrowing on Short-Term LoanSale of Available-for-Sale InvestmentsNet IncomeDecrease in Income Taxes PayableAmortization of CopyrightIncrease in Salaries and Wages PayableGain on Sale of EquipmentLoss on Sale of EquipmentDecrease in InventoriesDecrease in Salaries and Wages Payable
Loss on Sale of EquipmentIncrease in Accounts ReceivableIncrease in InventoriesDecrease in InventoriesSale of Available-for-Sale InvestmentsDecrease in Accounts ReceivableDepreciation ExpenseGain on Sale of EquipmentIncrease in Accounts PayablePurchase of InvestmentsDecrease in Income Taxes PayableIncrease in Salaries and Wages PayableDecrease in Salaries and Wages PayablePrincipal Payment on Long-term LoanDecrease in Accounts PayablePrincipal Payment on Short-term LoanBorrowing on Long-Term LoanIncrease in Prepaid RentDecrease in Prepaid RentPurchase of EquipmentIncrease in Income Taxes PayableAmortization of CopyrightDividend PaymentsSale of EquipmentBorrowing on Short-Term LoanNet Income
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash	$