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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

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

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