Statement of Cash FlowsIndirect Method

The following balances are available for Madison Company:

	2017		2016
Cash	$12,000		$10,000
Accounts receivable	10,000		12,000
Inventory	8,000		7,000
Prepaid rent	1,200		1,000
Land	75,000		75,000
Plant and equipment	200,000		150,000
Accumulated depreciation	-75,000		-25,000
	233,217.00		232,016.00
Accounts payable	$15,000		$15,000
Income taxes payable	2,500		2,000
Short-term notes payable	20,000		22,500
Bonds payable	75,000		50,000
Common stock	100,000		100,000
Retained earnings	18,700		40,500
	$231,200		$230,000

Bonds were issued during 2017 at face value, and plant and equipment were acquired for cash. Depreciation expense for the year was $50,000. A net loss of $21,800 was reported.

Required:

1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate net loss, cash payments, cash outflows, or decreases in cash.