Problem 23-4 Indigo Company had the following information available at the end of 2017. INDIGOCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $10,090 $3,980 Accounts receivable 20,320 12,920 Short-term investments 21,970 29,850 Inventory 41,660 34,950 Prepaid rent 3,020 11,990 Prepaid insurance 2,100 90 Supplies 1,010 75 Land 123,940 175,430 Buildings 346,530 346,530 Accumulated depreciation-buildings (104,430 ) (87,260 ) Equipment 527,070 402,150 Accumulated depreciation-equipment (131,260 ) (111,670 ) Patents 44,900 50,370 Total assets $906,920 $869,405 Accounts payable $21,940 $32,020 Income taxes payable 5,030 3,960 Salaries and wages payable 5,000 2,980 Short-term notes payable 10,010 10,010 Long-term notes payable 59,560 70,180 Bonds payable 397,360 397,360 Premium on bonds payable 21,860 25,065 Common stock 237,890 220,760 Paid-in capital in excess of par-common stock 24,840 17,470 Retained earnings 123,430 89,600 Total liabilities and stockholders' equity $906,920 $869,405INDIGO COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $1,160,530 Cost of goods sold 747,740 412,790 Gross margin Operating expenses Selling expenses $78,510 Administrative expenses 155,480 Depreciation/Amortization expense 42,230 Total operating expenses 276,220 Income from operations 136,570 Other revenues/expenses Gain on sale of land 8,080 Gain on sale of short-term investment 3,960 Dividend revenue 2,380 Interest expense (51,950 ) (37,530 ) Income before taxes 99,040 Income tax expense 39,610 Net income 59,430 Dividends to common stockholders (25,600 ) To retained earnings $33,830 Prepare a statement of cash flows for Indigo Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)INDIGO COMPANY Statement of Cash Flows Direct Method) Cash receipts: Cash payments:Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Reconciliation Schedule Reconciliation of Net Income to Adjustments to reconcile net income to