P13-4B. Statement of Cash Flows (Indirect Method) The Towne Company's income statement and com- parative balance sheets as of December 31 of 2016 and 2015 follow: LO2 TOWNE COMPANY Income Statement For the Year Ended December 31, 2016 $317,000 4,000 $331,000 Wages and other operating expenses..... $285,000 . .. . . . . . . . . . . .. 7,000 (17.000 $ (9,000) 59,000 10,000 (20,000) Total liabilities and stockholders' equity . . . . . . .. .. . . . . . . .___ . . . .. $622,000 $644,000 During the year, the following transactions occurred 1. Sold equipment for $9,000 cash that originally cost $19,000 and had $3,000 accumulated depreciation 2. Sold long-term investments that had cost $70,000 for $87,000 cash. Unrealized gains totaling $10,000 related to these investments had been recorded in earlier years. At year-end, the fair value adjustment and unrealized gain account balances were eliminated 3. Paid cash to extend the company's exclusive franchise for another three years. 4. Paid off a note payable at the bank on January 5. Declared and paid a $15,000 dividend. 6. Purchased treasury stock for cash 7. Acquired land valued at $60,000 by issuing 6,000 shares of common stock. Required a. Compute the change in cash that occurred in 2016. b. Prepare a statement of cash flows using the indirect method