P11-43. Statement of Cash Flows (Indirect Method)

Wolff Companys income statement and comparative balance sheets follow.

WOLFF COMPANY

Income Statement For Year Ended December 31, 2017

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $635,000

Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $430,000

Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,000

Insurance expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Depreciation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000

Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000 579,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 56,000

WOLFF COMPANY Balance Sheet

Dec. 31, 2017 Dec. 31, 2016

Cash...................................................$11,000$ 5,000

Accounts receivable. . . . . . . . . . . . . . . 41,000 32,000

Inventory . . . . . . . . . . . . . . . . . . . . . . . 90,000 60,000

Prepaid insurance. . . . . . . . . . . .. . . . . 5,000 7,000

PPE . . . . . . . . . . . . . . . . .. . . . . . . . . 250,000 195,000

Accumulated depreciation . . . . . . . .. (68,000) (51,000)

Total assets. . . . . . . . . . . . . . . . . . . $329,000 $248,000

Liabilities and Stockholders Equity

Dec. 31, 2017 Dec. 31, 2016

Accounts payable...............................$ 7,000$ 10,000

Wages payable . . . . . . . . . . . . . . . . . . 9,000 6,000

Income tax payable . . . . . . . . . . .. . . . 7,000 8,000 Bonds payable . . . . . . . . . . . . . . . . . . 130,000 75,000

Common stock. . . . . . . . . . . . . . . . . . 90,000 90,000

Retained earnings. . . . . . . . . . . . . . . 86,000 59,000

Total liabilities and equity . . . . . . . . $329,000 $248,000

Cash dividends of $29,000 were declared and paid during 2017. Also in 2017, PPE was purchased for cash, and bonds payable were issued for cash. Bond interest is paid semiannually on June 30 and December 31. Accounts payable relate to merchandise purchases.

Required

a. Compute the change in cash that occurred during 2017. b. Prepare a 2017 statement of cash flows using the indirect method.

PLEASE CREATE SPREADSHEET AND SHOW FORMULAS.