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

KINGBIRD INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17 12/31/16

Cash $6,000 $7,100

Accounts receivable 61,400 51,500

Short-term debt investments (available-for-sale) 34,600 18,000

Inventory 40,300 60,200

Prepaid rent 4,900 4,000

Equipment 152,400 130,600

Accumulated depreciationequipment (34,800) (25,200)

Copyrights 45,700 49,800

Total assets $310,500 $296,000

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 59,700 69,600

Common stock, $10 par 100,000 100,000

Contributed capital, common stock 30,000 30,000

Retained earnings 54,700 36,100

Total liabilities & stockholders equity $310,500 $296,000

KINGBIRD 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

Net income $24,600

Additional information:

1. Dividends in the amount of $6,000 were 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 $19,800 and 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).)