Statement of Cash FlowsIndirect Method

The comparative balance sheet of Coulson, Inc. at December 31, 2016 and 2015, is as follows:

	Dec. 31, 2016			Dec. 31, 2015
Assets
Cash	$300,600			$337,800
Accounts receivable (net)	704,400			609,600
Inventories	918,600			865,800
Prepaid expenses	18,600			26,400
Land	990,000			1,386,000
Buildings	1,980,000			990,000
Accumulated depreciationbuildings	(397,200)			(366,000)
Equipment	660,600			529,800
Accumulated depreciationequipment	(133,200)			(162,000)
Total assets	$5,042,400			$4,217,400
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$594,000			$631,200
Income taxes payable	26,400			21,600
Bonds payable	330,000			0
Common stock, $20 par	320,000			180,000
Paid-in capital: Excess of issue price over parcommon stock	950,000			810,000
Retained earnings	2,822,000			2,574,600
Total liabilities and stockholders' equity	$5,042,400			$4,217,400

The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2016 are as follows:

ACCOUNT Land				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance			1,386,000
Apr. 20	Realized $456,000 cash from sale		396,000	990,000

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance			990,000
Apr. 20	Acquired for cash	990,000		1,980,000

ACCOUNT Accumulated DepreciationBuildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance				366,000
Dec. 31	Depreciation for year		31,200		397,200

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance			529,800
Jan. 26	Discarded, no salvage		66,000	463,800
Aug. 11	Purchased for cash	196,800		660,600

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance				162,000
Jan. 26	Equipment discarded	66,000			96,000
Dec. 31	Depreciation for year		37,200		133,200

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
May 1	Issued 20-year bonds		330,000		330,000

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance				180,000
Dec. 7	Issued 7,000 shares of common stock for $40 per share		140,000		320,000

ACCOUNT Paid-in Capital in Excess of ParCommon Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance				810,000
Dec. 7	Issued 7,000 shares of common stock for $40 per share		140,000		950,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
2016
Jan. 1	Balance				2,574,600
Dec. 31	Net income		326,600		2,901,200
Dec. 31	Cash dividends	79,200			2,822,000

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Coulson, Inc. Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Net income 326,600 Adjustments to reconcile net income to net cash flow from operating activities Depreciation 68,400 Gain on sale of land -60,000 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in income taxes payable -94,800 -52,800 7,800 37,200 4,800 Net cash flow from operating activities Cash flows from investing activities: 162,800 Cash received from sale of land Less cash paid for acquisition of building Less cash paid for purchase of equipment 456,000 -990,000 196,800 66,000 X 730,800 Net cash flow used for investing activities Cash flows from financing activities Cash received from issuance of bonds payable Cash received from issuance of common stock Less cash paid for dividends 330,000 V 280,000 V 20 X -79,200 530,800 V 37,200 337,800 V 300,600 V Net cash flow from financing activities Decrease in cash Cash at beginning of the year Cash at end of the year