Question

Nash Inc., a greeting card company, had the following statementsprepared as of December 31, 2017. NASH INC. COMPARATIVE BALANCESHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash$6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debtinvestments (available-for-sale) 35,200 18,100 Inventory 39,60059,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights45,900 49,800 Total assets $312,200 $293,300 Accounts payable$45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wagespayable 8,100 3,900 Short-term loans payable 8,000 10,000 Long-termloans payable 60,500 68,500 Common stock, $10 par 100,000 100,000Contributed capital, common stock 30,000 30,000 Retained earnings55,700 35,000 Total liabilities & stockholders’ equity $312,200$293,300 NASH INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER31, 2017 Sales revenue $337,675 Cost of goods sold 175,500 Grossprofit 162,175 Operating expenses 119,500 Operating income 42,675Interest expense $11,300 Gain on sale of equipment 2,000 9,300Income before tax 33,375 Income tax expense 6,675 Net income$26,700 Additional information: 1. Dividends in the amount of$6,000 were declared and paid during 2017. 2. Depreciation expenseand amortization expense are included in operating expenses. 3. Nounrealized gains or losses have occurred on the investments duringthe year. 4. Equipment that had a cost of $20,000 and was 70%depreciated was sold during 2017. Prepare a statement of cash flowsusing the indirect method. (Show amounts that decrease cash flowwith either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).)