The balance sheet and the income statement for the year ended December 31, 2016 for Johnson Inc. follows. During 2016, cash of 15,000 was paid for building and equipment, 10,000 was paid for retirement of notes payable, and $68,000.was paid for cash dividends. . During 2016, cash was received from issuance of stock.

Balance Sheet As of December, 31.
	2016	2015
Cash	$ 25,000	$ 20,000
Accounts receivable, net	60,000	70,000
Inventory	80,000	100,000
Land	50,000	50,000
Building and equipment	130,000*	115,000
Accumulated depreciation	(85,000)	(70,000)
Total assets	$260,000	$285,000
Accounts payable	$ 30,000	$ 35,000
Income taxes payable	4,000	3,000
Wages payable	5,000	3,000
Current notes payable	50,000**	60,000
Common stock	110,000***	100,000
Retained earnings	61,000	84,000
Total liabilities and stockholders's equity	$260,000	$285,000

Income Statement For the Year Ended December 31, 2016
Sales		$500,000
Less expenses:
Cost of goods sold	$330,000
Selling and administrative expenses	90,000
(includes depreciation of $15,000)
Interest expense	5,000
Total expenses		425,000
Income before taxes		$ 75,000
Income tax expense		30,000
Net income		$ 45,000

(Required) Prepare the statement of cash flows for 2016. Present cash flows from operations using the indirect approach..