Pronghorn Inca greeting card company had the following statements prepared as of December 31, 2017 PRONGHORN INC. COMPARATIVE BALANCE SHEET ASOF DECEMBER 31, 2017 AND 2016 12/31/17 Cash $6,000 Accounts receivable 61.800 Short-term debt investments (available-for-sale) 35,200 Inventory 40,300 Prepaid rent 5.100 Equipment 155.100 Accumulated depreciation-equipment (35,200) Copyrights 45,800 Total assets $314,100 12/31/16 $6.900 50.900 17.900 60.600 3,900 131,300 (24,800 50.400 $297.100 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital.common stock Retained earnings Total liabilities & stockholders'equity $45,600 4,000 8.100 7.900 60,500 100.000 30,000 58,000 $314,100 $40,000 6.000 4,000 10.000 68,900 100,000 30.000 38.200 $297.100 PRONGHORN INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue $336,275 Cost of goods sold 173,300 Gross proft 162,975 Operating expenses 121.200 Operating income 41.775 Interest expense $11,400 Gain on sale of equipment 2.000 9.400 Income before tax 32,375 Income tax expense 6,475 Net income $25.900 Additional information 1 Dividends in the amount of $6,100 were declared and paid during 2017, 2 Depreciation expense and amortization expense are included in operating experes. No urvealized gains or losses have occurred on the investments during the year Equipment that had a cost of $19.900 and was 70% depreciated was sold during 2017 3 4 Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either asmes -15,000 or In parenthesis es (15,000 PRONGHORN INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net income Adjustments to reconcie net income to $