Splish Brothers Inc. reported the following information for 2017. Splish Brothers Inc. Comparative Balance Sheets December 31 Assets 2017 2016 Change Increase/Decrease Cash $55,490 $35,760 $19,730 Increase Accounts receivable 61,640 21,790 39,850 Increase Inventory 43,890 -0- 43,890 Increase Prepaid expenses 6,050 3,970 2,080 Increase Land 54,910 69,520 14,610 Decrease Buildings 198,520 198,520 -0- Accumulated depreciation-buildings (20,880) (13,920) 6,960 Increase Equipment 182,980 67,590 115,390 Increase Accumulated depreciation-equipment (28,090 ) (9.910) 18,180 Increase Totals $554,510 $373,320 Liabilities and Stockholders' Equity Accounts payable $43,400 $40,240 $3,160 Increase Accrued expenses payable 10,020 10,020 Decrease Bonds payable 99,900 149,610 49,710 Decrease Common stock ($1 par) 229,050 59,500 169,550 Increase Retained earnings 182.160 113,950 68,210 Increase Totals $554,510 $373,320 Splish Brothers Inc. Income Statement For the Year Ended December 31, 2017 Sales revenue $936,810 Cost of goods sold $473,060 Operating expenses 231,970 Interest expense 12,060 Loss on disposal of equipment 1,980 719,070 Income before income taxes 217,740 Income tax expense 65,040 Net income $152,700 Additional information: 1. Operating expenses include depreciation expense of $39,940. 2. Land was sold at its book value for cash. 3. 4. Cash dividends of $84,490 were declared and paid in 2017. Equipment with a cost of $166,010 was purchased for cash. Equipment with a cost of $50,620 and a book value of $35,820 was sold for $33,840 cash. 5. Bonds of $49,710 were redeemed at their face value for cash. 6. Common stock ($1 par) of $169,550 was issued for cash. Use this information to 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).) Splish Brothers Inc. Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Receivable Increase in Prepaid Expenses Decrease in Accrued Expenses Payable Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities 5 Cash Flows from Investing Activities: Sale of Equipment Purchase of Equipment Sale of Land Net Cash used by Investing Activities Cash Flows from Financing Activities: Sale of Common Stock Redemption of Bonds Payment of Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period