The Balance Sheets for the years ending December 31, 2016 and 2015 are shown below:

	12/31/16		12/31/15
Cash	225,800		100,200
Accounts receivable	385,000		449,000
Allowance for doubtful accounts	(57,000)		(43,000)
Inventory	545,600		328,400
Prepaid expenses	46,000		26,000
Long-term investments	384,000		528,000
Land	750,000		450,000
Buildings	3,156,000		2,556,000
Machinery	295,000		195,000
Office equipment	116,000		144,000
Accumulated depreciation:
Buildings	(152,000)		(128,000)
Machinery	(98,000)		(78,000)
Office equipment	(35,800)		(47,800)
	5,560,600		4,479,800
Accounts payable	327,000		510,200
Accrued liabilities	98,000		26,000
Dividends payable	128,000		0
Premium on bonds	32,000		0
Bonds payable	800,000		0
Preferred stock ($50 par)	0		60,000
Common stock ($10 par)	876,000		720,000
Additional paid-in capitalcommon	2,145,000		1,921,800
Retained earnings	1,154,600		1,241,800
	5,560,600		4,479,800

Additional information:

1. Income Statement Data for Year Ended December 31, 2016

Income before extraordinary item $272,000

Extraordinary loss: Condemnation of land 132,000

Net income $140,000

2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% stock dividend was issued March 31, 2016, when the market value was $22.00 per share.

3. The long-term investments were sold for $140,000.

4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000.

5. The following entry was made to record an exchange of an old machine for a new one:

Machinery ................................................................................ 160,000

Accumulated DepreciationMachinery................................... 40,000

Machinery .................................................................... 60,000

Cash ............................................................................. 140,000

6. A fully depreciated copier machine which cost $28,000 was written off.

7. Preferred stock of $60,000 par value was redeemed for $80,000.

8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016.

9. Bonds were sold at 104 on December 31, 2016.

10. Land that was condemned had a book value of $240,000.

Instructions

Prepare a statement of cash flows (indirect method). Ignore tax effects.