The 2017 and 2016 balance sheets of WalkerWalker Corporation follow. The 2017 income statement is also provided. WalkerWalker had no noncash investing and financing transactions during 2017. During the year, the company sold equipment for $15,700, which had originally cost $12,900 and had a book value of $11,300. The company did not issue any notes payable during the year but did issue common stock for $27,000. The company purchased plant assets and long-term investments with cash.

Walker Corporation
Income Statement
For the Year Ended December 31, 2017
Sales revenues			$345,000
Less: Cost of goods sold			77,000
Gross profit			$268,000
Less operating expenses:
Salaries and wages expense		$27,000
Depreciation expense		4,300
Other operating expenses		14,000
	Total operating expenses		45,300
Operating income			$222,700
Plus other income and less other expenses:
Interest expense		9,000
Gain on sale of PP&E		4,400
	Total other income and expenses		4,600
Income before income taxes			218,100
Less: Income tax expense			36,300
Net income			$181,800

Walker Corporation
Comparative Balance Sheets
December 31, 2017 and 2016
Assets		2017	2016
Current assets:
Cash		$47,500	$23,500
Accounts receivable		32,000	29,800
Inventory		86,400	94,800
Prepaid insurance		3,100	2,500
Total current assets		$169,000	$150,600
Property, plant, and equipment		150,000	139,000
Less: Accumulated depreciation		(30,000)	(27,300)
Investments		112,000	0
Total assets		$401,000	$262,300
Liabilities
Current liabilities:
Accounts payable		$33,500	$36,600
Wages payable		3,100	7,600
Interest payable		1,900	0
Income taxes payable		6,000	0
Other accrued expenses payable		18,900	22,900
Total current liablities		$63,400	$67,100
Long-term liabilities		71,000	113,000
Total liabilities		$134,400	$180,100
Stockholders' equity
Common stock		$103,000	$76,000
Retained earnings		163,600	6,200
Total stockholders' equity		$266,600	$82,200
Total liabilities and equity		$401,000	$262,300

Requirements

1. Prepare the statement of cash flows for WalkerWalker Corporation for 2017 using the indirect method.

2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response.