Problem 17-11A

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.

ROTHLISBERGER COMPANY Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$57,000			$45,000
Accounts receivable		40,000			62,000
Inventory		148,000			142,000
Prepaid expenses		13,500			21,000
Land		95,000			130,000
Buildings		196,000			196,000
Accumulated depreciationbuildings		(56,000	)		(30,000	)
Equipment		228,000			155,000
Accumulated depreciationequipment		(42,000	)		(35,000	)
Total		$679,500			$686,000
Liabilities and Stockholders Equity
Accounts payable		$46,000			$39,000
Bonds payable		260,000			290,000
Common stock, $1 par		187,000			157,000
Retained earnings		186,500			200,000
Total		$679,500			$686,000

Additional information:

1.		Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $7,500.
2.		Land was sold for cash at book value.
3.		Cash dividends of $57,500 were paid.
4.		Net income for 2017 was $44,000.
5.		Equipment was purchased for $94,000 cash. In addition, equipment costing $21,000 with a book value of $12,000 was sold for $5,000 cash.
6.		Bonds were converted at face value by issuing 30,000 shares of $1 par value common stock.

Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method