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

BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016

12/31/17 12/31/16

Cash$6,000 $7,000

Accounts receivable62,000 51,000

Short-term debt investments (available-for-sale)35,000 18,000

Inventory40,000 60,000

Prepaid rent5,000 4,000

Equipment154,000 130,000

Accumulated depreciation-equipment(35,000)(25,000)

Copyrights46,000  50,000

Total assets$313,000  $295,000

Accounts payable$46,000 $40,000

Income taxes payable4,000 6,000

Salaries and wages payable8,000 4,000

Short-term loans payable8,000 10,000

Long-term loans payable60,000 69,000

Common stock, $10 par100,000 100,000

Contributed capital, common stock30,000 30,000

Retained earnings57,000  36,000

Total liabilities & stockholders' equity$313,000  $295,000

BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$338,150

Cost of goods sold175,000

Gross profit163,150

Operating expenses120,000

Operating income43,150

Interest expense$11,400

Gain on sale of equipment2,000 9,400

Income before tax33,750

Income tax expense6,750

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 $20,000 and was 70% depreciated was sold during 2017.

Required - Make a statement of cash flows with this information using the indirect method.