Problem 23-1

The following are Teal 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		$822,700			$706,000			$116,700
Accounts receivable		1,130,000			1,174,600			(44,600	)
Inventory		1,857,900			1,710,100			147,800
Property, plant, and equipment		3,314,200			2,974,500			339,700
Accumulated depreciation		(1,173,300	)		(1,036,900	)		(136,400	)
Investment in Myers Co.		307,900			276,600			31,300
Loan receivable		251,300						251,300
Total assets		$6,510,700			$5,804,900			$705,800
Accounts payable		$1,018,900			$952,200			$66,700
Income taxes payable		29,700			49,600			(19,900	)
Dividends payable		80,200			100,500			(20,300	)
Lease liabililty		400,300						400,300
Common stock, $1 par		500,000			500,000
Paid-in capital in excess of parcommon stock		1,505,000			1,505,000
Retained earnings		2,976,600			2,697,600			279,000
Total liabilities and stockholders equity		$6,510,700			$5,804,900			$705,800

Additional information:

1.		On December 31, 2016, Teal acquired 25% of Myers Co.s common stock for $276,600. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,106,400. Myers reported income of $125,200 for the year ended December 31, 2017. No dividend was paid on Myerss common stock during the year.
2.		During 2017, Teal loaned $299,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $48,200, plus interest at 10%, on December 31, 2017.
3.		On January 2, 2017, Teal sold equipment costing $60,600, with a carrying amount of $38,100, for $40,200 cash.
4.		On December 31, 2017, Teal entered into a capital lease for an office building. The present value of the annual rental payments is $400,300, which equals the fair value of the building. Teal made the first rental payment of $59,900 when due on January 2, 2018.
5.		Net income for 2017 was $359,200.
6.		Teal 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		$80,200		$100,500

Prepare a statement of cash flows for Teal 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).)