Problem 2: (30 pts) Based on the following information, prepare the statement of cash flows using the indirect method. Nick,Andy,Joey Company Balance Sheet 2017 2016 Change Current assets: Cash Accounts receivable $121,500 $148,000 61,000 72,000 6,000 23,000 63,000 68,000 14,000 20,000 (2,000) 4,000 (8,000) 3,000 Marketable securities Prepaid expenses Long-term assets Plant&equipment (net) Land Patent 306,000 67,000 220,000 91,000 86,000 (24,000) 5,000 Total Assets 716,000 625,500 Current liabilities: Accounts payable Interest payable Other accruals Tax payable Note payable Long-term liabilities Mortgage payable Bond payable Stockholder's equity Common stock Paid-in-capital Retained earnings 49,000 8,200 10,400 20,500 32,250 18,000 11,000 11,000 10,500 47,000 31,000 (2,800) (600) 10,000 (14,750) 140,000 38,000 121,000 110,000 19,000 (72,000) 300,000 35,000 250,000 10,000 50,000 25,000 45,650 Total Liabilities and Equity 716,000 625,500 Income Statement For the Year Ended December 31, 2017 Revenues Sales $950,000 Cost of goods sold Depreciation expense *Other operating expenses Interest expense Tax expense 549,050 61,000 152,000 85,000 48,000 Total expense Net Income (Includes $5,000 of amortization expense for patent and $40,000 of lease expense which is a fixed charge) 54,950