Question 21 of 24 119 E Splish Brothers Inc reported the following information for 2017 Splish Brothers Inc. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals 2017 $55,490 61,640 43,890 6,050 54,910 198,520 (20,880) 182.980 (28,090) $554,510 2016 $35,760 21.790 -0- 3.970 69,520 198,520 (13,920 67,590 19.910) $373,320 Change Increase/Decrease $19,730 Increase 39,850 Increase 43.890 Increase 2,080 Increase 14,610 Decrease -0- 6,960 Increase 115.390 Increase 18,180 Increase $43,400 0 99,900 229,050 182.160 $554,510 $40,240 10,020 149,610 59,500 113,950 $373,320 $3,160 Increase 10,020 Decrease 49.710 Decrease 169,550 Increase 68.210 Increase Splish Brothers Inc. Income Statement For the Year Ended December 31, 2017 Sales revenue $936,810 Cost of goods sold $473,060 Operating expenses 231,970 Interest expense 12.060 Loss on disposal of equipment 1,980 719,070 Income before income taxes 217,740 Income tax expense 65,040 Net income $152,700 Additional information: 1 Operating expenses include depreciation expense of $39.940. 2. Land was sold at its book value for cash. 3. Cash dividends of $84,490 were declared and paid in 2017. Equipment with a cost of $166,010 was purchased for cash. Equipment with a cost of $50,620 and a book value of 535 820 was sold for $33,840 cash. 5. Bonds of $49.710 were redeemed at their face value for cash. Common stock ($1 par) of $169,550 was issued for cash. 4. 6. Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.8. (15,000)) ! Splish Brothers Inc. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to $ Question 21 of 24 / 19 II! v