Jabroni Co. just finished its 2018 BS and IS. They need your help in creating their statement of cash flows. They give you the following information to help you in your efforts:

1. All sales were made on credit
2. All credits to AR were for cash payments by customers (no writeoffs of bad debts)
3. All inventory purchases were made for cash
4. For the Other Expenses account, these are all paid in advance and initially debited to Prepaid Expenses.

Balance Sheet
	2018	2017
Assets
Cash	$193,450	$61,550
AR	77,100	80,750
Inventory	240,600	250,700
Prepaid Expenses	15,100	17,000
Equipment	262,250	200,000
Acc. Dep.	(40,750)	(95,000)
Total Assets	$607,750	$515,000
Liabilities and OE
AP	$17,750	102,000
ST NP	15,000	10,000
LT NP	100,000	77,500
Total Liabilities	132,750	189,500
CS	215,000	200,000
APIC	30,000	0
RE	230,000	125,500
Total Liab + OE	$607,750	$515,000

GAZELLE lance Sheets December 31, 2017 and 2016

Income Statement
Sales		$1,185,000
COGS		595,000
Gross Profit		590,000
Depreciation Expense	38,600
Other Expenses	362,850
Total Op. Expenses		401,450
Operating Income		$188,550
Other Gains/Losses
Loss on Sale of Equip.		(2,100)
Income before Taxes		186,450
Income Tax Expense		28,350
Net Income		$158,100

come Statement For Year Ended December 31, 2017

Additional Information:

1. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash.
2. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long-term note payable for the balance.
3. Borrowed $5,000 cash by signing a short-term note payable.
4. Paid $47,500 cash to reduce the long-term notes payable.
5. Issued 3,000 shares of common stock for $15 cash per share ($5 par value).
6. Declared and paid cash dividends of $53,600.

Prepare a complete statement of cash flows using the indirect method for operating activities.