(Statement of Cash Flows - Indirect Method) The following are Sanibel 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 Sheets
Account	2017	2016	Increase (Decrease)
Cash	$650,000	$510,000	$140,000
Accounts Receivable	1,260,000	1,090,000	170,000
Inventory	1,538,000	1,370,000	168,000
Property, Plant, and Equipment	2,680,000	1,763,000	917,000
Accumulated Depreciation	(850,000)	(760,000)	(90,000)
Investment in Island Co.	475,000	420,000	55,000
Loan Receivable	350,000	450,000	(100,000)
TOTAL ASSETS	$6,103,000	$4,843,000	$1,260,000
Accounts Payable	$1,080,000	$910,000	$170,000
Income Taxes Payable	90,000	75,000	15,000
Dividends Payable	100,000	60,000	40,000
Capital Lease Obligation	850,000	0	850,000
Common Stock, $1 par	400,000	400,000	0
Paid-in Capital in excess of par - Common Stock	2,100,000	2,100,000	0
Retained Earnings	1,483,000	1,298,000	185,000
TOTAL LIABILITES & STOCKHOLDER'S EQUITY	$6,103,000	$4,843,000	$1,260,000

Additional Information:

1. On December 31, 2016, Sanibel acquired 25% of Island Co.'s common stock for $420,000. On that date, the carrying value of Island's assets and liabilities, which approximated their fair values, was $1,680,000. Island reported income of $220,000 for the year ended December 31, 2017. No dividend was paid on Island's common stock during the year.

2. During 2016, Sanibel loaned $500,000 to POI Co., an unrelated company. POI made the first semi-annual principal repayment of $50,000, plus interest at 10%, on December 31, 2016. POI is current on the loan as of December 31, 2017.

3. On January 2, 2017, Sanibel sold equipment costing $100,000, with a carrying amount of $31,000, for $20,000 cash.

4. On December 31, 2017, Sanibel entered into a capital lease for a new factory. The present value of the annual rental payments is $850,000, which equals the fair value of the building. Sanibel made the first rental payment of $120,000 when due on January 2, 2018.

5. Net Income for 2017 was $285,000

6. Sanibel declared and paid cash dividends for 2017 and 2016 as follows:

	2017	2018
Declared	December 15, 2017	December 15, 2016
Paid	February 28, 2018	February 28, 2017
Amount	$100,000	$60,000

INSTRUCTIONS:

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

Please provide a column at the right end of the statement showing any necessary computations.