The comparative balance sheet of Four Seasons Enterprises Inc. for December

31, 2017 and 2016, is as follows:

Dec. 31, 2017 Dec. 31, 2016

Assets Cash $ 395,000 $ 88,000

Accounts receivable (net) 225,000 242,000

Inventories 638,000 576,000

Prepaid expenses 20,500 15,000

Equipment 895,000 750,000

Accumulated depreciationequipment (175,000) (140,000)

Total assets $1,998,500 $1,531,000

Accounts payable (merchandise creditors) $ 100,000 $ 92,000

Mortgage note payable 0275,000

Common stock, $5 par 500,000 250,000

Paid-in capital: Excess of issue over parcommon stock 250,000 125,000

Retained earnings 1,148,500 789,000

Total liabilities and stockholders equity $1,998,500 $1,531,000

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

A. Net income, $175,000.

B. Depreciation reported on the income statement, $100,000.

C. Equipment was purchased at a cost of $115,000 and fully depreciated equipment costing $30,000 was discarded, with no salvage value realized.

D. The mortgage note payable was not due for five years, but the terms permitted earlier payment without penalty.

E. 20,000 shares of common stock were issued at $25 for cash.

F. Cash dividends declared and paid, $35,000.

Prepare a statement of cash flows, using the indirect method .