Jefferson Agency Inc has prepared the following comparative balance sheets for 2016 and 2017:

.2017 ....2016

Cash .$ 287,000 .$ 153,000

Accounts receivable ...149,000 ...117,000

Inventory ...150,000 ...180,000

Prepaid expenses ...18,000 ..27,000

Plant assets ..1,280,000 ....1,050,000

Accumulated depreciation ..(450,000) .(375,000)

Patent .153,000 174,000

.$1,587,000 ...$1,326,000

Accounts payable .$ 153,000 .$ 168,000

Accrued liabilities ..60,000 ..42,000

Mortgage payable .. .450,000

Preferred stock ..525,000 ...

Additional paid-in capitalpreferred ..120,000 ...

Common stock ...600,000 ...600,000

Retained earnings .129,000 ....66,000

...$1,587,000 ..$1,326,000

1.The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained Earnings account has been charged for dividends of $158,000 and credited for the net income for the year.

The income statement for 2017 is as follows:

Sales ..$1,980,000

Cost of sales .1,089,000

Gross profit ....891,000

Operating expenses .670,000

Net income .$ 221,000

Instruction: From the information above, prepare a statement of cash flows (indirect method) for Jefferson Agency, Inc. for the year ended December 31, 2017. USING INDIRECT METHOD, PLEASE ALSO SHOW ALL CALCULATIONS