Question #3: (10 points) GAMAL COMPANY Comparative Balance Sheets December 31, 2017, 2016 Assets 2017 2016 Cash S 191,000 $ 159,000 Accounts Receivable 12,000 15,000 Inventory 170,000 160,000 Prepaid expenses 6,000 8,000 Land 140,000 80,000 Equipment 160,000 -0- Accumulated depreciation - equipment (16,000) Total $ 663,000 $ 422,000 Liabilities and Stockholder's Equity Accounts Payable $ 52.000 $ 60,000 Accrued expenses payable 15,000 20,000 Income taxes Payable 12,000 Bonds Payable 130,000 -0- Share capital - ordinary 360,000 300,000 Retained earnings 94,000 42,000 Total 663,000 422,000 GAMAL COMPANY Income Statement for the year ended 31, 2017 Revenues $ 975,000 Cost of goods sold $ 660,000 Operating exp: (excluding depreciation) 176,000 Depreciation expense 18,000 Loss on sale of store equipment 1,000 855,000 Income before income taxes 120,000 Income tax expense 36,000 Net Income $ 84,000 Additional information 1. In 2017, the company declared and paid $ 32,000 cash dividend. 2. Bonds were issued at face value for $ 130,000 in cash. 3. Equipment costing $ 180,000 was purchased for cash. 4- Equipment costing $ 20,000 was sold for $ 17,000 cash when the book value of the equipment was $ 18,000. 5. Share capital - ordinary of $ 60,000 was issued to acquire land. Required: Prepare a statement of cash flows using the indirect method