Please use the same format and accounts that are shown on the pictures.

Comparative balance sheet accounts of Indigo Inc. are presented below INDIGO INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts 2017 2016 Cash $42.400 $33.700 Accounts Receivable 70,500 60,500 Inventory 30,200 23,800 Equity Investments 22.300 38,100 Machinery 30,300 18,700 Buildings 67,800 56,100 Land 7,500 7,500 $271,000 $238,400 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no par Retained Eamings $2,300 5,600 13,500 34,700 3,400 21,000 150,000 40.500 $271,000 $1,500 2,200 8,900 24,800 2,700 31,200 125,000 42,100 $238,400 Additional data (ignoring taxes): 1. Net Income for the year was $44,300. 2. Cash dividends declared and paid during the year were $20,900. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. Equity Investments (level of ownership is less than 2096) that cost $24,800 were sold during the year for $28,600. No unrealized gains and losses were recorded on these investments in 2017. 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. Indigo's 2017 Income statement follows ignoring taxes). Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,750 depreciation and $5,217 bad debts) Income from operations Other: Gain on sale of investments Loss on sale of machinery Net Income $544,600 383.300 161,300 120,000 41,300 $3,800 (800) 3,000 $44,300 Luupus. C o nnen testiuni (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using elther a negative sign preceding the number 0. 5 or parentheses .0.45).) Net cash flow from operating activities (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign .g. 15,000 or in parenthesis eg. (15,000).) INDIGO INC. Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Sale of Machinery Gain on Sale of Investments increase in Accounts Receivable (Net) increase in Accrued Payables Increase in Accounts Payable Increase in Inventory TCash Flows from Operatin Net Cash Provided by Inv Sale of Machinery Sale of Investments Purchase of Machinery Purchase of Investments purchase of investments Cash Flows from Investing Cash Flows from Investing TCash Flows from Financing Activities Flash Dividends Paid Cash Dividends Paid C TReduction in Long-term Note Payable TNet Cash Used by Financing Activities Net Decrease in Cash TCash, January 1, 2017 TCash, December 31, 2017