The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017. Net income $314,000 Amortization of patent 12,000 Proceeds from issuance of common stock 103,000 Decrease in inventory 27,000 Sale of building at a $15,000 gain 85,000 Decrease in accounts payable 15,000 Purchase of equipment 185,000 Payment of cash dividends 24,000 Depreciation expense 55,000 Decrease in accounts receivable 23,000 Payment of mortgage 75,000 Increase in short-term notes payable 8,000 Sale of land at a $5,000 loss 40,000 Purchase of delivery van 33,000 Cash at beginning of year 205,000

The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017. $314,000 12,000 Net income Amortization of patent Proceeds from issuance of common stock Decrease in inventory Sale of building at a $15,000 gain 103,000 27,000 85,000 Decrease in accounts payable 15,000 Purchase of equipment 185,000 Payment of cash dividends 24,000 55,000 Depreciation expense 23,000 75,000 8,000 Decrease in accounts receivable Payment of mortgage Increase in short-term notes payable Sale of land at a $5,000 loss Purchase of delivery van Cash at beginning of year 40,000 33,000 205,000 The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31, 2017. $314,000 12,000 Net income Amortization of patent Proceeds from issuance of common stock Decrease in inventory Sale of building at a $15,000 gain 103,000 27,000 85,000 Decrease in accounts payable 15,000 Purchase of equipment 185,000 Payment of cash dividends 24,000 55,000 Depreciation expense 23,000 75,000 8,000 Decrease in accounts receivable Payment of mortgage Increase in short-term notes payable Sale of land at a $5,000 loss Purchase of delivery van Cash at beginning of year 40,000 33,000 205,000 Waverly Corporation Statement of Cash Flows For the Year Ended December 31, 2017 A Cash Flows from Investing Activities Amortization Expense $ Adjustments to reconcile net income to net