Presented below are the financial statements of Vaughn Company Ltd. 2016 VAUGHN COMPANY LTD. Comparative Statements of Financial Position December 31 Assets 2017 Equipment 59,340 Accumulated depreciation-equipment (29,610 ) Inventory 30,200 Accounts receivable 32,860 Cash 36,360 Total 129,150 77,950 (23,530 ) 20,660 19,360 19,670 114,110 Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Income taxes payable Total 17,850 47,770 27,530 28,660 7,340 129,150 13,680 43,090 32,100 16,980 8,260 114,110 VAUGHN COMPANY LTD. Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 241,690 175,850 65,840 24,070 41,770 3,530 38,240 8,660 29,580 Additional data: 1. Depreciation expense is 14,960. 2. Dividends declared and paid were 24,900. 3. During the year, equipment was sold for 9,730 cash. This equipment cost 18,610 originally and had accumulated depreciation of 8,880 at the time of sale. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) VAUGHN COMPANY LTD. Partial Statement of Cash Flows Adjustments to reconcile net income to