Question 5

The following are Coronado Corp.s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

Comparative Balance Sheet

COMPARATIVE BALANCE SHEETS
		2017			2016			Increase (Decrease)
Cash		$821,300			$698,500			$122,800
Accounts receivable		1,118,800			1,165,800			(47,000	)
Inventory		1,863,300			1,709,100			154,200
Property, plant, and equipment		3,292,300			2,950,900			341,400
Accumulated depreciation		(1,153,700	)		(1,030,800	)		(122,900	)
Investment in Myers Co.		307,300			274,600			32,700
Loan receivable		248,800						248,800
Total assets		$6,498,100			$5,768,100			$730,000
Accounts payable		$1,010,500			$951,500			$59,000
Income taxes payable		30,300			49,600			(19,300	)
Dividends payable		80,000			100,200			(20,200	)
Lease liabililty		401,900						401,900
Common stock, $1 par		500,000			500,000
Paid-in capital in excess of parcommon stock		1,496,000			1,496,000
Retained earnings		2,979,400			2,670,800			308,600
Total liabilities and stockholders equity		$6,498,100			$5,768,100			$730,000

Additional information:

1.		On December 31, 2016, Coronado acquired 25% of Myers Co.s common stock for $274,600. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,098,400. Myers reported income of $130,800 for the year ended December 31, 2017. No dividend was paid on Myerss common stock during the year.
2.		During 2017, Coronado loaned $301,400 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $52,600, plus interest at 10%, on December 31, 2017.
3.		On January 2, 2017, Coronado sold equipment costing $60,500, with a carrying amount of $38,100, for $40,000 cash.
4.		On December 31, 2017, Coronado entered into a capital lease for an office building. The present value of the annual rental payments is $401,900, which equals the fair value of the building. Coronado made the first rental payment of $60,600 when due on January 2, 2018.
5.		Net income for 2017 was $388,600.
6.		Coronado declared and paid the following cash dividends for 2017 and 2016.

		2017		2016
Declared		December 15, 2017		December 15, 2016
Paid		February 28, 2018		February 28, 2017
Amount		$80,000		$100,200

Prepare a statement of cash flows for Coronado Corp. for the year ended December 31, 2017, using the indirect method.