The following are Indigo Corp.'s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017. COMPARATIVE BALANCE SHEETS 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 2017 $810,500 1,135,300 1,842,100 3,329,200 (1,161,100) 307,500 250,800 $6,514,300 $699,700 1,172,400 1,702,300 2,940,500 (1,045,200) 274,100 Increase (Decrease) $110,800 (37,100 ) 139,800 388,700 (115,900 ) 33,400 250,800 $770,500 $5,743,800 $954,100 49,500 99,700 $66,900 (19,600 ) (20,500) 448,400 Accounts payable Income taxes payable Dividends payable Lease liabililty Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,021,000 29,900 79,200 448,400 500,000 1,500,900 2,934,900 $6,514,300 500,000 1,500,900 2,639,600 $5,743,800 295,300 $770,500 Additional information: 1. On December 31, 2016, Indigo acquired 25% of Myers Co.'s common stock for $274,100. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,400. Myers reported income of $133,600 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year. 2. During 2017, Indigo loaned $348,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $98,100, plus interest at 10%, on December 31, 2017 3. On January 2, 2017, Indigo sold equipment costing $59,700, with a carrying amount of $37,800, for $39,800 cash. 4. On December 31, 2017, Indigo entered into a capital lease for an office building. The present value of the annual rental payments is $448,400, which equals the fair value of the building. Indigo made the first rental payment of $60,500 when due on January 2, 2018. 5. Net income for 2017 was $374,500. 6. Indigo declared and paid the following cash dividends for 2017 and 2016. Declared Paid Amount 2017 December 15, 2017 February 28, 2018 $79,200 2016 December 15, 2016 February 28, 2017 $99,700 Prepare a statement of cash flows for Indigo Corp. for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) INDIGO CORP. Statement of Cash Flows Adjustments to reconcile net income to The following are Indigo Corp.'s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017. COMPARATIVE BALANCE SHEETS 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 2017 $810,500 1,135,300 1,842,100 3,329,200 (1,161,100) 307,500 250,800 $6,514,300 $699,700 1,172,400 1,702,300 2,940,500 (1,045,200) 274,100 Increase (Decrease) $110,800 (37,100 ) 139,800 388,700 (115,900 ) 33,400 250,800 $770,500 $5,743,800 $954,100 49,500 99,700 $66,900 (19,600 ) (20,500) 448,400 Accounts payable Income taxes payable Dividends payable Lease liabililty Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,021,000 29,900 79,200 448,400 500,000 1,500,900 2,934,900 $6,514,300 500,000 1,500,900 2,639,600 $5,743,800 295,300 $770,500 Additional information: 1. On December 31, 2016, Indigo acquired 25% of Myers Co.'s common stock for $274,100. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,400. Myers reported income of $133,600 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year. 2. During 2017, Indigo loaned $348,900 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $98,100, plus interest at 10%, on December 31, 2017 3. On January 2, 2017, Indigo sold equipment costing $59,700, with a carrying amount of $37,800, for $39,800 cash. 4. On December 31, 2017, Indigo entered into a capital lease for an office building. The present value of the annual rental payments is $448,400, which equals the fair value of the building. Indigo made the first rental payment of $60,500 when due on January 2, 2018. 5. Net income for 2017 was $374,500. 6. Indigo declared and paid the following cash dividends for 2017 and 2016. Declared Paid Amount 2017 December 15, 2017 February 28, 2018 $79,200 2016 December 15, 2016 February 28, 2017 $99,700 Prepare a statement of cash flows for Indigo Corp. for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) INDIGO CORP. Statement of Cash Flows Adjustments to reconcile net income to