P12-3A. Statement of Cash Flows (Indirect Method) The Dairy Company's income statement and com parative balance sheets as of December 31 of 2016 and 2015 follow: DAIRY COMPANY Income Statement For the Year Ended December 31, 2016 $700,000 95,000 22,000 7,000 10,000 36,000 Wages and other operating expenses.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 635,000 $ 65,000 DAIRY COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets 43,000 103,000 12,000 360,000 28,000 129,000 10,000 336,000 (87,000) (84,000) 50,000 43,000 $496,000 $487,000 Liabilities and Stockholders' Equity 7,000 8,000 100,000 252,000 248,000 98,000 4,000 6,000 60,000 142,000 Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . During the year, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. New equipment worth S60,000 was acquired in exchange for $60,000 of bonds payable. Bonds payable of $100,000 were retired for cash at a loss. A $21,000 cash dividend was declared and paid. All stock issuances were for cash. Required a. Compute the change in cash that occurred in 2016 b. Prepare a statement of cash flows using the indirect method