Problem 23-1

The following are Flounder Corp.s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

COMPARATIVE BALANCE SHEETS
		2017			2016			Increase (Decrease)
Cash		$807,900			$696,100			$111,800
Accounts receivable		1,130,100			1,166,300			(36,200	)
Inventory		1,850,400			1,707,300			143,100
Property, plant, and equipment		3,324,100			2,995,100			329,000
Accumulated depreciation		(1,163,100	)		(1,032,700	)		(130,400	)
Investment in Myers Co.		308,700			277,600			31,100
Loan receivable		250,800						250,800
Total assets		$6,508,900			$5,809,700			$699,200
Accounts payable		$1,019,400			$949,200			$70,200
Income taxes payable		30,100			50,300			(20,200	)
Dividends payable		79,800			99,100			(19,300	)
Lease liabililty		389,500						389,500
Common stock, $1 par		500,000			500,000
Paid-in capital in excess of parcommon stock		1,499,000			1,499,000
Retained earnings		2,991,100			2,712,100			279,000
Total liabilities and stockholders equity		$6,508,900			$5,809,700			$699,200

Additional information:

1.		On December 31, 2016, Flounder acquired 25% of Myers Co.s common stock for $277,600. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,110,400. Myers reported income of $124,400 for the year ended December 31, 2017. No dividend was paid on Myerss common stock during the year.
2.		During 2017, Flounder loaned $289,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $38,400, plus interest at 10%, on December 31, 2017.
3.		On January 2, 2017, Flounder sold equipment costing $60,500, with a carrying amount of $38,400, for $39,800 cash.
4.		On December 31, 2017, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $389,500, which equals the fair value of the building. Flounder made the first rental payment of $60,100 when due on January 2, 2018.
5.		Net income for 2017 was $358,800.
6.		Flounder declared and paid the following cash dividends for 2017 and 2016.

		2017		2016
Declared		December 15, 2017		December 15, 2016
Paid		February 28, 2018		February 28, 2017
Amount		$79,800		$99,100

Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2017, 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).)