P12-4A. Statement of Cash Flows (Indirect Method) The Rainbow Company's income statement and comparative balance sheets as of December 31 of 2016 and 2015 follow: RAINBOW COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue ................ S750,000 Dividend income. .. ... 19,000 769,000 Cost of goods sold. .... $440,000 Wages and other operating expenses.................... ...... 130,000 Depreciation expense.... ... . . . 39,000 Patent amortization expense...... 7,000 Interest expense .............. ........ 13,000 Income tax expense... ...................... 44000 Loss on sale of equipment........................... 5,000 Gain on sale of investments. (10,000) 668,000 Net income................... $101,000