L02 P13-2B. Statement of Cash Flows (Indirect Method) The Sweet Company's income statement and com- parative balance sheets as of December 31 of 2016 and 2015 are presented below SWEET COMPANY Income Statement For the Year Ended December 31, 2016 $950,000 Wages expense .207,000 62,000 Gain on sale of equipment..(16,000) 842,000 $108,000 SWEET COMPANY Balance Sheets Dec. 31, 2016 8 Dec. 31, 2015 Assets Cash. $ 32,000 33,000 8 43,000 9,00011,000 (191.000 (175.000) 2 Liabilities and Stockholders' Equity Accounts payable Income tax payable ..5,000 11,000 18,000 80,000 660,000 .176,000 98,000 During the year, Sweet Company sold equipment for $27,000 cash that originally cost $57,000 and had $46,000 accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of $30,000 were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise purchases Required a. Compute the change in cash that occurred during 2016. b. Prepare a statement of cash flows using the indirect method