The comparative balance sheets and income statement for Fanning Company follow Balance Sheets As of December 31 2017 2016 Assets $ 2,984 1,224 5,829 40,098 (18,193) 10,444 Cash 25,233 2,040 6,218 15,698 (7,841) 16,954 Accounts receivable Inventory Equipment Accumulated depreciation- Equipment Land 42,386 Total assets 58,302 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock $ 2,486 4,016 6,533 10,500 21,337 42,386 2,858 21,400 31,558 Retained earnings Total liabilities and equity 58,302 Income Statement For the Year Ended December 31, 2017 39,600 (15,696) 23,904 (3,822) 20,082 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land 450 (90) Net income 20,442 Additional Data 1. During 2017, the company sold equipment for $18,176; it had originally cost $31,900. Accumulated depreciation on this equipment was $14,174 at the time of the sale. Also, the company purchased equipment for $7,500 cash 2. The company sold land that had cost $4,390. This land was sold for $4,300, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $10,900 at the time of exchange 3. Paid dividends of $10,221. Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) FANNING COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Less: Increase/Decrease in current assets and current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities