Problem 12-9A Your answer is partially correct. Try again. Condensed financial data of Metlock, Inc. follow. 2016 Metlock, Inc. Comparative Balance Sheets December 31 Assets 2017 Cash $ 95,344 Accounts receivable 103,604 Inventory 132,750 Prepaid expenses 33,512 Long-term investments 162,840 Plant assets 336,300 Accumulated depreciation (59,000) Total $805,350 $ 57,112 44,840 121,363 30,680 128,620 286,150 (61,360) $607,405 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 120,360 19,470 129,800 259,600 276,120 $805,350 $ 79,414 24,780 172,280 206,500 124,431 $607,405 Metlock, Inc. Income Statement Data For the Year Ended December 31, 2017 Sales revenue $458,383 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $159,843 14,644 54,870 32,190 5,581 8,850 275,978 Net income $ 182,405 Additional information: 1. New plant assets costing $118,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $67,850 and accumulated depreciation of $57,230 were sold for $1,770 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $30,716 was declared and paid during the year. 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).) 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).) Metlock, Inc. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 182,405 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Loss on Disposal of Plant Assets -267,128 Depreciation Expense 33,512 Increase in Accounts Receivable 9,243 Increase in Inventory 4,108 Increase in Prepaid Expenses -5,135 X Increase in Accounts Payable -40,946 Decrease in Accrued Expenses Payable 10,270 Net Cash Provided by Operating Activities 208,778 Cash Flows from Investing Activities Purchase of Plant Assets -118,000 Gain on Disposal of Plant Assets 1,770 X Gain on Disposal of Plant Assets 1,770 Purchase of Investments -34,220 Net Cash used by Investing Activities -150,450 Cash Flows from Financing Activities Sale of Common Stock 53,100 X Payment of Cash Dividends -30,7161 Redemption of Bonds -42,4801 X Net Cash used by Financing Activities -20,096 Net Increase in Cash 38,232 Cash at Beginning of Period 57,112 Cash at End of Period 95,344 Click if you would like to Show Work for this question: Open Show Work