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The Sage Corporation prepared, for 2017 and 2016, the following balance sheet data: December 31 2017 2016 Cash .................................... $ 87,375 $ 63,750 Available-for-sale securities

The Sage Corporation prepared, for 2017 and 2016, the following balance sheet data:

December 31

2017

2016

Cash ....................................

$ 87,375

$ 63,750

Available-for-sale securities (not cash equivalents) .........................

17,250

105,000

Accounts receivable .....................

90,000

86,250

Merchandise inventory ...................

187,500

163,500

Prepaid insurance .......................

1,125

1,500

Land, buildings, and equipment .........

1,378,875

1,087,500

Accumulated depreciation ................

(558,750)

(498,750)

Total .................................

$1,203,375

$1,008,750

Accounts payable ........................

$ 153,375

$ 236,250

Salaries payable ........................

18,750

26,250

Notes payable--bank (current) ...........

37,500

150,000

Bonds payable ...........................

375,000

0

Common stock ............................

600,000

600,000

Retained earnings (deficit) .............

18,750

(3,750)

Total .................................

$1,203,375

$1,008,750

Additional information:

(a)

Sold available-for-sale securities (not cash equivalents) costing $87,750 for $90,000.

(b)

Equipment costing $18,750 with a book value of $3,750 was sold for $4,500.

(c)

Issued 8% bonds payable at par, $375,000.

(d)

Purchased new equipment for cash, $310,125.

(e)

Paid cash dividends of $22,500 during the year.

(f)

Net income for 2017 was $45,000.

(g)

Proceeds from the notes payable were used for operating purposes.

Prepare a cash flow statement for Sage Corporation for 2017, using the indirect method.

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