The comparative balance sheets and income statements for Gypsy Company follow Balance Sheets As of December 31 2017 2016 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land 32,500 16,300 2,800 9,800 52,000 4,750 11,200 45,000 (17,800) (21,800) 28,000 12,000 Total assets $103,650 71,100 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings $ 3,750 4,900 7,800 25,000 33,400 5,800 47,000 47,100 Total liabilities and equity $103,650 71,100 Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold $ 61,200 (24,500) Gross margin Depreciation expense 36,700 (12,000) Operating income Gain on sale of equipment Loss on disposal of land 24,700 1,500 (100) Net income $ 26,100 Additional Data 1. During 2017, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. Also, the company purchased equipment for $29,000 cash 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange 3. Paid dividends of $12,400 Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Net income Less: Increases in current assets and Decreases in s 26,100 current liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Depreciation expense (1950) (1,400) (1,150) 12,000 Plus: Noncash charges Proceeds from sale of equipment Less: Loss on disposal of land (1,500) 100 Net cash inflow from operating activities Cash flows from investing activities $ 32,200 Paid to purchase equipment Proceeds from sale of equipment Proceeds from sale of land (29,000) 21,500 5,900 Net cash inflow from investing activities Cash flows from financing activities: (1,600) Repayment of debt Paid for dividends (2,000) (12,400) (12 (14,400) 16,200 6,300 $32,500 Net cash inflow from financing activities Net decrease in cash Plus: Beginning cash balance Ending cash balance Schedule of noncash investing and financing activities: Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted