Terry company's 2017 income statement and comparative balance sheets at December 31 of 2016 and 2017are shown.

Terry Company

Income Statement

For the year Ended December 31, 2017

Sales $ 390,000

Cost of Goods Sold 235,000

_______

Gross Profit $ 155,000

Wages Expenses $ 63,000

Depreciation Expense 14,000

Other Operating Expenses 26,000

Income Tax Expense 17,000 120,000

______ ________

Net Income $ 35,000

Terry Company

Balance Sheets

Dec. 31, Dec. 31,

Assets 2016 2017

Cash $ 16,000 $ 30,000

Accounts Receivable (net) 28,000 35,000

Inventory 110,000 84,000

Prepaid Expense 12,000 8,000

Plant Assets 178,000 130,000

Accumulated Depreciation (76,000) (62,000)

Total Assets $ 268,000 $ 225,000

Liabilities and Stockholders' Equity

Accounts Payable $ 27,000 $ 14,000

Wages Payable 6,000 2,500

Income Tax Payable 3,000 4,500

Common Stock 135,000 125,000

Retained Earnings 97,000 79,000

________ _________

Total Liabilities and $ 268,000 $ 225,000

Stockholders' Equity

Cash dividends of $17,000 were declared and paid during 2016 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash

REQUIRED

Prepare only the Cash Flows from Operations section of the Cash Flow Statement using the

indirect method.

Reminder: you need only prepare the Cash Flow from Operations section of the statement