Prepare a Statement of Cash Flows for 2017 using the Indirect Method.

Income Statement For the Year Ended December 31, 2017 1,650,000 920,000 730,000 470,000 Net Sales Cost of goods sold Gross Margin Operating Expenses (including Depreciation) Expense of $12,0000 on Building & $23,100 on Equipment, and Amortization Expense of $4,800 Operating Income Other Income (Expense) Interest Expense Dividend Income Gain on Sale of Investments Loss on Disposal of Equipment Income Before Income Taxes Income Taxes Net Income 260,000 - 55,000 3,400 12,500 2,300 41,400 218,600 52,200 166,400 a. Long-term investments (available-for-salesecurities) that cost $70,000 were sold at a gain of $12,500; additional long-term investments were made in the amount of $20,000 b. Five acres of land were purchased for $25,000 to build a parking lot. c. Equipment that cost $37,500 with accumulated depreciation of $25,300 was sold at a loss of $2,300; new equipment costing $30,000 was purchased. d. Notes payable in the amount of $100,400 were repaid; an additional $30,000 was borrowed by signing notes payable. e. Bonds payable in the amount of $100,000 were converted into 6,000 shares of common stock. f. The Mortgage Payable account was reduced by $20,000 during the year. g. Cash Dividends declared and paid were $50,000. Comparative Balance Sheet December 31, 2018 and 2017 2017 2016 Assets Cash Accounts Receivable (net) Inventory Prepaind Expenses Long-Term Investments Land Buildings Accumulated Depreciation, Buildings Equipment Accumulated Depreciation, Equipment Intangible Assets Total Assets 115,850 121,850 296,000 314,500 322,000 301,000 7,800 5,800 36,000 86,000 150,000 125,000 462,000 462,000 91,000 79,000 159,730 167,230 43,400 45,600 19,200 24,000 1,434,180 1,482,780 - Liabilities and Stockholders Equity Accounts Payable 133,750 233,750 Notes Payable (current) 75,700 145,700 Accrued Liabilities 5,000 Income Taxes Payable 20,000 Bonds Payable 210,000 310,000 Mortgage Payable 330,000 350,000 Common Stock - $10 par value 360,000 300,000 Paid - in Capital in Excess of Par Value 90,000 50,000 Retained Earnings 209,730 93,330 Total Liabilities and Stockholders' Equity 1,434,180 1,482,780