The comparative balance sheet of Blue Cat Enterprises Inc. at December 31,2017 and 2016 is as follows:
		2017		2016
Assets
Cash		$ 94,560		$ 27,360
Accounts receivable (net)		102,430		75,430
Inventory		112,890		137,890
Prepaid expenses		-		20,000
Land		25,000		-
Building		137,000		-
Accumulated depreciationbuilding		(15,000)		-
Equipment		33,000		34,000
Accumulated depreciationequipment		(14,500)		(24,000)
Patents		4,000		6,000
Total assets		$479,380		$276,680
Liabilities and Stockholders Equity
Accounts payable		$ 10,750		$ 36,750
Notes payable (current)		10,000		-
Accrued liabilities		-		12,300
Mortgage payable		162,000		-
Common stock, $10 par value		180,000		150,000
Additional paid-in capital		57,200		37,200
Retained earnings		59,430		40,430
Total liabilities and stockholders equity		$479,380		$276,680

Additional data obtained from an examination of the accounts in the ledger for the 2017 are as follows:

(a) net income, $28,000;

(b) building and equipment depreciation expense amounts, $15,000 and $3,000, respectively

(c) equipment that cost $13,500 with accumulated depreciation of $12,500 sold at a gain of $5,300; (d) equipment purchases, $12,500; (e) patent amortization, $3,000; purchase of patent, $1,000

(f) funds borrowed by issuing notes payable, $25,000; notes payable repaid, $15,000

(g) land and building purchased for $162,000 by signing a mortgage for the total cost

(h) 1,500 shares of $20 par value common stock issued for a total of $50,000

(i) paid cash dividends, $9,000.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flow from operating activities.

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