Reference no: EM131762835

Indigo Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

INDIGO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
12/31/17		12/31/16
Cash	$5,900	$7,100
Accounts receivable	62,000	51,000
Short-term debt investments (available-for-sale)	35,000	18,100
Inventory	40,400	59,900
Prepaid rent	5,000	4,000
Equipment	153,300	129,100
Accumulated depreciation-equipment	(35,000	)	(24,800	)
Copyrights	46,300		50,300
Total assets	$312,900		$294,700
Accounts payable	$46,500	$40,200
Income taxes payable	4,100	6,100
Salaries and wages payable	8,100	4,100
Short-term loans payable	8,000	10,100
Long-term loans payable	60,600	69,600
Common stock, $10 par	100,000	100,000
Contributed capital, common stock	30,000	30,000
Retained earnings	55,600		34,600
Total liabilities & stockholders' equity	$312,900		$294,700

INDIGO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017
Sales revenue	$338,150
Cost of goods sold	175,700
Gross profit	162,450
Operating expenses	119,400
Operating income	43,050
Interest expense	$11,300
Gain on sale of equipment	2,000	9,300
Income before tax	33,750
Income tax expense	6,750
Net income	$27,000

Additional information:

1. Dividends in the amount of $6,000 were declared and paid during 2017.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2017.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)