The netchangesin the statement of financial position accounts of Black Beauty Inc. for the calendar year 2017 are shown below:

Account

Cash.........................................................................................................................Accounts receivable.................................................................................................Allowance for doubtful accounts.............................................................................Inventory..................................................................................................................Prepaid expenses.....................................................................................................Long-term investments............................................................................................Land.......................................................................................................................Buildings...................................................................................................................Machinery.................................................................................................................Office equipment.....................................................................................................Accumulated depreciation:

Buildings...........................................................................................................Machinery........................................................................................................Office equipment.............................................................................................

Accounts payable.....................................................................................................Accrued liabilities.....................................................................................................Dividends payable....................................................................................................Bonds payable..........................................................................................................Preferred shares.......................................................................................................Common shares........................................................................................................Retained earnings.....................................................................................................

Additional information:

1. Net income for the year was $70,000.

$

Debit 62,800

108,600 10,000

$

Credit

32,000 7,000

72,000 150,000

300,000 50,000

10,000 6,000

91,600

36,000

64,000 416,000

30,000

189,600

43,600 $852,600

_______

$852,600

14,000

12,000

1. Cash dividends of $64,000 were declared December 15, 2017, payable January 15, 2018. A 5% common stock dividend was issued March 31, 2017, when the market value was $22.00 per share. At the time there were 36,000 common shares outstanding.
2. The long-term investments were sold for $70,000.
3. A building which had cost $240,000, with a book value of $150,000, was sold for $200,000, and a
4. new one was purchased.
5. The following entry was made to record an exchange of an old machine for a new one:

Machinery.....................................................................................................Accumulated DepreciationMachinery......................................................Machinery......................................................................................Cash...............................................................................................

1. A fully depreciated copier machine, which cost $14,000, was written off.
2. Preferred shares originally issued for $30,000 were redeemed for $40,000.
3. Black Beauty sold 6,000 common shares on June 15, 2017 for $25 a share.
4. Bonds were sold at 104 on December 31, 2017.
5. Land with a book value of $120,000 was sold for $54,000.

Required

Prepare a statement of cash flows (indirect method) for calendar 2017.

80,000 20,000

30,