Statement of Cash Flows Question.

I both have the question and the key. I need someone tell me how to calculate the answer on the key, Thank you.

ACCT325\tWorkshop\t4Ch.23\tStatement\tof\tCash\tFlows Total\tPoints:\t20 Due\tDate:\tTuesday,\tOctober\t17,\t2017\t(At\tthe\tbeginning\tof\tclass) Name:_______________________________ Part\t1.\tIndirect\tMethod (13\tpoints)\tThe\tcomparative\tbalance\tsheets\tfor\tNCAA\tCorporation show\tthe\tfollowing\tinformation. December\t31 2017 2016 $70,350 $56,000 Cash Accounts\treceivable 56,700 42,000 Inventory 36,400 28,000 Investments 0 14,000 Building 0 105,000 Equipment 294,000 84,000 Patent 14,700 21,000 Totals $472,150 $350,000 Allowance\tfor\tdoubtful\taccounts Accumulated\tdepreciation\ton\tequipment Accumulated\tdepreciation\ton\tbuilding Accounts\tpayable Dividends\tpayable Notes\tpayable,\tshortterm\t(nontrade) Longterm\tnotes\tpayable Common\tstock Retained\tearnings Totals $13,125 8,400 0 21,000 0 26,250 184,800 131,950 86,625 $472,150 $17,500 21,000 31,500 14,000 24,500 35,000 84,000 91,000 31,500 $350,000 Additional\tdata\trelated\tto\t2017\tare\tas\tfollows: 1. Equipment\tthat\thad\tcost\t$37,800\tand\twas\t80%\tdepreciated\tat\ttime\tof\tdisposal\twas\tsold\tfor $9,450. 2. $40,950\tof\tthe\tlongterm\tnote\tpayable\twas\tpaid\tby\tissuing\tcommon\tstock. 3. Cash\tdividends\t$24,500\twere\tpaid. 4. On\tJanuary\t1,\t2017,\tthe\tbuilding\twas\tcompletely\tdestroyed\tby\ta\tflood.\tInsurance\tproceeds\ton the\tbuilding\twere\t$110,250\t(after\tnetting\t$8,820\ttaxes). 5. Investments\t(availableforsale)\twere\tsold\tat\t$6,300\tabove\ttheir\tcost.\tThe\tcompany\thas\tmade similar\tsales\tand\tinvestments\tin\tthe\tpast. 6. A\tlongterm\tnote\tfor\t$141,750\twas\tissued\tfor\tthe\tacquisition\tof\tequipment. 1 NCAA\tCORPORATION Statement\tof\tCash\tFlows For\tthe\tYear\tEnded\tDecember\t31,\t2017 Cash\tflows\tfrom\toperating\tactivities Net\tincome $55,125\t(.5pt) Adjustments\tto\treconcile\tnet\tincome\tto\tnet\tcash\tprovided by\toperating\tactivities: Gain\ton\tsale\tof\tequipment ($1,890)\t(.5pt) Gain\tfrom\tflood\tdamage (45,570) (.5pt) Depreciation\texpense 17,640\t(1pt) Patent\tamortization 6,300\t(.5pt) Gain\ton\tsale\tof\tinvestments (6,300)\t(.5pt) Increase\tin\tAccts\tRec\t(net) (19,075)\t(1pt) Increase\tin\tinventory (8,400)\t(.5pt) Increase\tin\taccounts\tpayable 7,000\t(.5pt) (50,295) Net\tcash\tprovided\tby\toperating\tactivities $4,830\t(.5pt) Cash\tflows\tfrom\tinvesting\tactivities Sale\tof\tinvestments Sale\tof\tequipment Purchase\tof\tequipment Proceeds\tfrom\tflood\tdamage\tto\tbuilding Net\tcash\tprovided\tby\tinvesting\tactivities $20,300\t(.5pt) 9,450\t(.5pt) (106,050)\t(1pt) 119,070\t(.5pt) Cash\tflows\tfrom\tfinancing\tactivities Payment\tof\tdividends Payment\tof\tshortterm\tnote\tpayable Net\tcash\tused\tby\tfinancing\tactivities ($24,500)\t(.5pt) (8,750)\t(.5pt) $42,770\t(.5pt) Increase\tin\tcash Cash,\tJanuary\t1,\t2017 Cash,\tDecember\t31,\t2017 $14,350\t(.5pt) 56,000\t(.5pt) $70,350\t(.5pt) Supplemental\tdisclosures\tof\tcash\tflow\tinformation: Noncash\tinvesting\tand\tfinancing\tactivities Retired\tnote\tpayable\tby\tissuing\tcommon\tstock Purchased\tequipment\tby\tissuing\tnote\tpayable ($33,250) 2 $40,950\t(.5pt) 141,750\t(.5pt) $182,700\t(.5pt) Part\t2.\tDirect\tMethod (7\tpoints) Vandals\tCompany\thas\tnot\tyet\tprepared\ta\tformal\tstatement\tof cash\tflows\tfor\tthe\t2017\tfiscal\tyear.\tComparative\tbalance\tsheets\tas\tof\tDecember\t31,\t2016,\tand\t2017, and\ta\tstatement\tof\tincome\tand\tretained\tearnings\tfor\tthe\tyear\tended\tDecember\t31,\t2017,\tare presented\tbelow. Vandals\tCompany Statement\tof\tIncome\tand\tRetained\tEarnings For\tThe\tYear\tEnded\tDecember\t31,\t2017 ($000\tOmitted) Sales Expenses Cost\tof\tgoods\tsold Salaries\tand\tbenefits Heat,\tlight,\tand\tpower Depreciation Property\ttaxes Patent\tamortization Miscellaneous\texpenses Interest Income\tbefore\tincome\ttaxes Income\ttaxes Net\tincome Retained\tearnings\t\tJanuary\t1,\t2016 $1,800 1,200 600 252 350 15 50 250 Stock\tdividend\tdeclared\tand\tissued Retained\tearnings\t\tDecember\t31,\t2016 $10,000 4,517 5,483 2,193 3,290 550 3,840 340 $3,500 Vandals\tCompany Comparative\tBalance\tSheet December\t31 ($000\tOmitted) Assets Current\tassets Cash U.S.\tTreasury\tnotes\t(Availableforsale) Accounts\treceivable Inventory Total\tcurrent\tassets Longterm\tassets Land Buildings\tand\tequipment Accumulated\tdepreciation Patents\t(less\tamortization) Total\tlongterm\tassets Total\tassets 2017 3 2016 $2,729 105 765 748 4,347 $1,050 350 450 650 2,500 450 1,680 (672) 105 1,563 $5,910 100 700 (420) 120 500 $3,000 Liabilities\tand\tStockholders'\tEquity Current\tliabilities Accounts\tpayable Income\ttaxes\tpayable Notes\tpayable Total\tcurrent\tliabilities Longterm\tnotes\tpayable\t\tdue\t2017 Total\tliabilities Stockholders'\tequity Common\tstock\toutstanding Retained\tearnings Total\tstockholders'\tequity Total\tliabilities\tand\tstockholders'\tequity $522 48 250 1,440 400 1,840 $870 80 250 1,200 400 1,600 1,190 3,500 4,690 $5,910 850 550 1,400 $3,000 Instructions: Prepare\ta\tstatement\tof\tcash\tflows\tusing\tthe\tdirect\tmethod.\tChanges\tin\taccounts\treceivable\tand in\taccounts\tpayable\trelate\tto\tsales\tand\tcost\tof\tsales. Vandals\tCompany Statement\tof\tCash\tFlows For\tThe\tYear\tEnded\tDecember\t31,\t2017 ($000\tomitted) Cash\tflows\tfrom\toperating\tactivities Cash\treceipts\tfrom\tcustomers Payments\tfor\tmerchandise $2,246\t(.5pt) Salaries\tand\tbenefits 1,200\t(.5pt) Heat,\tlight,\tand\tpower 600\t(.5pt) Property\ttaxes 350\t(.5pt) Interest 250\t(.5pt) Miscellaneous 50\t(.5pt) Income\ttaxes 2,225\t(.5pt) Net\tcash\tprovided\tby\toperating\tactivities Cash\tflows\tfrom\tinvesting\tactivities Sale\tof\tavailableforsale\tinvestments Purchase\tof\tbuildings\tand\tequipment Purchase\tof\tland Net\tcash\tused\tby\tinvesting\tactivities $9,685\t(.5pt) 6,921 $2,764 $245\t(.5pt) (980)\t(.5pt) (350)\t(.5pt) ($1,085) Increase\tin\tcash Cash,\tJanuary\t1,\t2017 Cash,\tDecember\t31,\t2017 $1,679\t(.5pt) 1,050\t(.5pt) $2,729\t(.5pt) 4