Prepare a statement of cash flows for Henderson ?Industries, Inc., for the year ended December? 31, 2017?, using the indirect method.

Henderson Industries, Inc.

Income Statement

For the Year Ended December 31, 2017

Sales revenues

$950,000

Less: Cost of goods sold

378,000

Gross profit

$572,000

Less operating expenses:

Salaries and wages expense

$187,000

Insurance expense

14,500

Depreciation expense

48,400

Other operating expenses

88,000

Total operating expenses

337,900

Operating income

$234,100

Plus other income and less other expenses:

Interest expense

$5,900

Gain on sale of PP&E

3,000

Total other income and expenses

2,900

Income before income taxes

$231,200

Less: Income tax expense

69,360

Net income

$161,840

Henderson Industries, Inc.
Comparative Balance Sheets
December 31, 2017 and 2016
Assets		2017	2016
Current assets:
Cash		$472,000	$287,000
Accounts receivable		76,000	126,000
Inventory		335,000	211,000
Prepaid insurance		7,000	3,500
Total current assets		$890,000	$627,500
Property, plant, and equipment		$615,000	$600,000
Less: Accumulated depreciation		(151,000)	(112,000)
Investments		88,000	76,000
Total assets		$1,442,000	$1,191,500
Liabilities
Current liabilities:
Accounts payable (inventory purchases)		$56,000	$37,000
Wages payable		16,000	17,000
Interest payable		1,600	800
Income taxes payable		60,360	11,500
Other accrued expenses payable		6,800	3,000
Total current liablities		$140,760	$69,300
Long-term liabilities		60,000	20,000
Total liabilities		$200,760	$89,300
Stockholders' equity
Common stock		$603,000	$603,000
Retained earnings		638,240	499,200
Total stockholders' equity		$1,241,240	$1,102,200
Total liabilities and equity		$1,442,000	$1,191,500