repare a worksheet - indirect method Condensed financial data of Oakley Company appear below. OAKLEY COMPANY Comparative Balance sheet December 31 Assets 2017 2016 Cash $82,700 $47,250 Accounts Receivable 90,800 57,000 Inventory 126,900 102,650 Investments 84,500 87,000 Equipment 255,000 205,000 Accumulated depreciation--equipment ($49,500) (40,000) Total 590,400 $458,900 Liabilities and Stockholders' Equity Accounts payable $57,700 $48,280 Accrued expenses payable 12,100 18,830 Bonds payable 100,000 70,000 Common stock 250,000 200,000 Retained earnings 170,600 121,790 Total $590,400 $458,900 OAKLEY COMPANY Income Statement For the Year ended December 31, 2017 Sales revenue $297,500 Gain on disposal of equipment 8,750 306,250 Less: Cost of goods sold $99,460 Operating expenses (excluding depreciation expense) 14,670 Depreciation expense 49,700 Income tax expense 7,270 Interest expense 2,940 174,040 Net income $132,210 Additional information: 1. Equipment costing $97,000 was purchased for cash during the year. 2. Investments were sold at cost. 3. Equipment costing $47,000 was sold for $15,550, resulting in gain of $8,750. 4. A cash dividend of $83,400 was declared and paid during the year. Instructions Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns, using letters to cross-reference each entry. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . OAKLEY COMPANY Worksheet - Statement of Cash Flows For the Year Ended December 31, 2017 Reconciling Items Balance Sheet Accounts Balance 12/31/16 Debit Credit Balance 12/31/17 Debits Cash Value Value Value Accounts Receivable Value Value Value Inventory Value Value Value Investments Value Value Value Equipment Value Value Value Value Total ? ? Credits Accumulated depreciation --equipment Value Value Value Value Accounts payable Value Value Value Accrued expenses payable Value Value Value Bonds payable Value Value Value Common stock Value Value Value Retained earnings Value Value Value Value Total ? ? Statement of Cash Flow Effects Operating activities Net income Value Increase in accounts receivable Value Increase in inventory Value Increase in accounts payable Value Decrease in accrued expenses payable Value Depreciation expense Value Gain on disposal of equipment Value Investing activities Sale of investments Value Sale of equipment Value Purchase of equipment Value Financing activities Issuance of common stock Value Issuance of bonds Value Payment of dividends Value Totals ? ? Increase in cash Value Totals ? ? After you have completed the requirements of P17-12A, consider the additional question. Answers are on the other tab in this file. 1. Assume that in 2017, the balances for accounts receivable, inventory, accounts payable, and accrued expenses payable changed to $94,800, $122,900, $54,700 and $15,100 respectively. Revise the worksheet to show the impact of these changes.