Ivanhoe Inc., a greeting card company, had the following statements prepared as of December 31, 2017. IVANHOE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 61,400 Accounts receivable 51,500 Short-term debt investments (available-for-sale) 18,000 34,600 Inventory 40,300 60,200 Prepaid rent 4,900 4,000 Equipment 152,400 130,600 Accumulated depreciation-equipment (34,800) (25,200) Copyrights 45,700 49,800 $296,000 Total assets $310,500 Accounts payable $46,100 $40,300 Income taxes payable 4,000 6,000 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,100 10,000 Long-term loans payable 69,600 59,700 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 54,700 36,100 $310,500 $296,000 Total liabilities & stockholders' equity IVANHOE INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue $333,450 Cost of goods sold 174,300 Gross profit 159,150 Operating expenses 118,800 Operating income 40,350 Interest expense $11,600 Gain on sale of equipment 2,000 9,600 Income before tax 30,750 Income tax expense 6,150 $24,600 Net income Additional information: were declared and paid during 2017. 1. Dividends in the amount of $6,000 2. Depreciation expense and amortization expense are included in operating expense 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2 Prepare a statement of cash flows using the indirect method. (Show amounts that d IVANHOE INC Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Gain on Sale of Equipment Depreciation Expense Amortization of Copyright Decrease in Inventories Increase in Accounts Receivable Increase in Prepaid Rent Increase in Accounts Payable Decrease in Income Taxes Payable Increase in Salaries and Wages Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Purchase of Investments Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payment on Short-term Loan Principal Payment on Long-term Loan Dividend Payments Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period