1. Statement of Cash Flows Using a Work SheetIndirect Method (Appendix)

   Wabash Corp. just completed another successful year, as indicated by the following income statement:

   	For the Year Ended December 31, 2017

   Sales revenue	$2,460,000
   Cost of goods sold	1,400,000
   Gross profit	$1,060,000
   Operating expenses	460,000
   Income before interest and taxes	$600,000
   Interest expense	100,000
   Income before taxes	$500,000
   Income tax expense	150,000
   Net income	$350,000

   Presented here are comparative balance sheets:

   	December 31
   	2017		2016
   Cash	$140,000		$210,000
   Accounts receivable	60,000		145,000
   Inventory	200,000		180,000
   Prepayments	15,000		25,000
   Total current assets	$415,000		$560,000
   Land	$600,000		$700,000
   Plant and equipment	850,000		600,000
   Accumulated depreciation	(225,000)		(200,000)
   Total long-term assets	$1,225,000		$1,100,000
   Total assets	$1,640,000		$1,660,000
   Accounts payable	$140,000		$120,000
   Other accrued liabilities	50,000		55,000
   Income taxes payable	80,000		115,000
   Total current liabilities	$270,000		$290,000
   Long-term bank loan payable	$200,000		$250,000
   Common stock	$450,000		$400,000
   Retained earnings	720,000		720,000
   Total stockholders' equity	$1,170,000		$1,120,000
   Total liabilities and stockholders' equity	$1,640,000		$1,660,000

   Other information is as follows:

   1. Dividends of $350,000 were declared and paid during the year.
   2. Operating expenses include $25,000 of depreciation.
   3. Land was sold for its book value, and new plant and equipment were acquired for cash.
   4. Part of the bank loan was repaid, and additional common stock was issued for cash.

   The president has asked you some questions about the year's results. She is very impressed with the profit margin of 14% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $100,000.

   Required:

   1. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet. If an amount box does not require an entry, leave it blank.

   	Balances			Cash Inflows (Outflows)
   Accounts	12/31/17	12/31/16	Changes	Operating	Investing	Financing
   Cash
   Accounts Receivable
   Inventory
   Prepayments
   Land
   Plant and Equipment
   Accumulated Depreciation
   Accounts Payable
   Other Accrued Liabilities
   Income Taxes Payable
   Long-Term Bank Loan Payable
   Common Stock
   Retained Earnings
   Net Income
   Totals	$	$	$	$	$	$
   Net increase (decrease) in cash				$