Question 5 Riverbed Inc., a greeting card company, had the following statements prepared as of December 31, 2017. RIVERBED INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100$6,900 61,900 50,500 Short-term debt investments (available-for-sale) 34,800 18,200 39,90059,800 4,000 155,500131,200 Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 4,900 (34,800) (25,300) 45,70050,200 $314,000 $295,500 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 $46,200 $39,700 6,100 7,900 4,000 7,900 10,000 59,800 68,600 100,000 100,000 30,000 30,000 58,200 37,100 $314,000 $295,500 4,000 RIVERBED INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses $335,575 173,200 162,375 119,100 3,275 Operating income Interest expense $11,400 2,000 Gain on sale of equipment Income before tax Income tax expense Net income 9,400 3,875 6,775 $27,100 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments 4. Equipment that had a cost or,520, 100 and was 70% depreciated was sold during 2017. the Indirect method. (Show amounts that decrease cash fiow with either a - sign e.g. -15,000 or in parenthesis e.gca.oools (Show amounts t Prepare a statement of cash flows using ES RIVERBED INC Statement of Cash Flows Cash Flows from Operating Activities Net Income 27100 Adjustments to reconcile net income to Cash Flows from Operating Activities