Problem 16-1B Preparing the statement of cash flows (indirect method) LO5,6 e Cel CHECK FIGURE: Net cash inflow from operating activities $168,168 MED Supplies Inc., a software retailer, recently completed its 2017 operations. The following information is available: MED Supplies Inc. MED Supplies Inc Income Statement Comparative Balance Sheet Information For Year Ended December 31, 2017 December 31 Sales $1,365,840 2016 2017 Cost of goods sold 624, q60 $120,792 71,232 Cash Gross profit 740,880 43,512 52,080 Accounts receivable Operating expenses: 392,784 313,320 Merchandise inventory Depreciation expense 39,648 Equipment 236,208 171,360 Other expenses 402,696 Accumulated depreciation 108,192 68,544 442,344 Total operating expenses. Accounts payable 86,184 79,800 298,536 Profit from operations Income taxes payable 10,080 15,120 100,464 Income taxes 463,680 369,600 Common shares 198,072 Retained earnings Profit 125,160 74,928 Additional information regarding MED Supplies Inc.'s activities during 2017: 1. Equipment was purchased for $64,848 cash. 2. Issued 3,360 common shares for cash at $28 per share. 3. Declared and paid $147,840 of cash dividends during the year