The comparative balance sheets and income statement for Fanning Corporation follow: Balance Sheets As of December 31 2017 2016 Assets $ 60,720 38,310 21,780 Cash Accounts receivable 29,700 157,174 2,345 254, 830 Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land 172, B90 4,690 285, 670 (145,760) 239,070) 191,4B0 80,780 550,489 $ 365, 050 Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings $ 65,836 30,555 74,680 26,190 200,000 250,000 204,09B 64,180 550,489 $ 365, 050 Total liabilities and equity Income Statement For the Year Ended December 31, 2017 $1,501,000 797,732 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses 703,268 (20,430) (28,520) (254,650) (259,750) 30, 34. Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings $ 65,836 30,555 74,680 26,190 200,000 250,000 204,09B 64,180 550,489 $ 365, 050 Total liabilities and equity Income Statement For the Year Ended December 31, 2017 $1,501,000 797,732 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses 703,268 (20,430) (28,520) (254,650) (259,750) 139,918 Net income Other Information 1. Purchased land for $110,700 2. Purchased new equipment for $102,300 3. Sold old equipment that cost $133,140 with accumulated depreciation of $113,740 for $19,400 cash. 4. Issued common stock for $50,000 Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) ED 4. Issued common stock for $50,000 Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) FANNING CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Add: Increases in current assets and Decreases in current liabilities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance