Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

SKYSONG INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17 12/31/16

Cash

$5,900 $7,000

Accounts receivable

61,400 51,500

Short-term debt investments (available-for-sale)

35,000 18,200

Inventory40,000

60,500

Prepaid rent5,000

4,100

Equipment152,900

131,100

Accumulated depreciationequipment(35,200

)(25,100

)Copyrights45,800

50,000

Total assets$310,800

$297,300

Accounts payable$46,100

$40,100

Income taxes payable3,900

5,900

Salaries and wages payable8,000

4,000

Short-term loans payable8,100

10,000

Long-term loans payable60,400

69,300

Common stock, $10 par100,000

100,000

Contributed capital, common stock30,000

30,000

Retained earnings54,300

38,000

Total liabilities & stockholders' equity$310,800

$297,300

SKYSONG INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$332,700

Cost of goods sold176,000

Gross profit156,700

Operating expenses119,300

Operating income37,400

Interest expense$11,500

Gain on sale of equipment2,100

9,400

Income before tax28,000

Income tax expense5,600

Net income$22,400

Additional information:

1.Dividends in the amount of $6,100were 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 during the year.4.Equipment that had a cost of $19,800and was 70% depreciated was sold during 2017.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)