OURCES Carla Inc., a greeting card company, had the following statements prepared as of December 31, 2017. CARLA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,000 $7,000 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 39,600 59,700 000 4,000 152,800 128,900 by Study Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets (34,900) (24,800) 45,900 49,800 $312,200 $293,300 45,900 $39,900 4,000 6,000 8,100 3,900 8,000 10,000 60,500 68,500 100,000 100,000 30,000 30,000 55,700 35,000 $312,200 $293,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity NT RESOURCES 03 e 23-13 e 23-14 CARLA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 $337,675 175,500 162,175 119,500 42,675 Sales revenue Cost of goods sold core esults by Study Gross profit Operating expenses Operating income $11,300 2,000 Interest expense Gain on sale of equipment Income before tax Income tax expense Net income 9,300 33,375 6,675 $26,700 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 $20,000 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 (15,000).) ENT RESOURCES Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with eit (15,000).) 03 ise 23-13 ise 23- CARLA INC Statement of Cash Flows Score Results by Study ve Adjustments to reconcile net income to GNMENT RESOURCES HW 03 xercise 23-13 iew Score iew Results by Study ective