BG Wholesalers is developing its annual financial statements at December 31, 2016. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

	2016				2015
Balance sheet at December 31
Cash	$	39,000			$	31,400
Accounts receivable		35,300				31,100
Merchandise inventory		46,000				40,000
Property and equipment		124,900				101,900
Less: Accumulated depreciation		(33,400)				(26,600)
	$	211,800			$	177,800
Accounts payable	$	39,400			$	30,700
Accrued wage expense		3,000				3,600
Note payable, long-term		46,400				50,600
Contributed capital		93,600				74,300
Retained earnings		29,400				18,600
	$	211,800			$	177,800
Income statement for 2016
Sales	$	134,000
Cost of goods sold		84,000
Other expenses		39,200
Net income	$	10,800

Additional Data:
a.	Bought equipment for cash, $23,000.
b.	Paid $4,200 on the long-term note payable.
c.	Issued new shares of stock for $19,300 cash.
d.	No dividends were declared or paid.
e.	Other expenses included depreciation, $6,800; wages, $20,800; taxes, $6,800; other, $6,400.
f.	Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

Required:
1.	Prepare the statement of cash flows for the year ended December 31, 2016, using the indirect method.(List cash outflows as negative amounts.)

BG WHOLESALERSStatement of Cash FlowsFor the Year Ended December 31, 2016Cash flows from operating activities:Net income$10,800Adjustments to reconcile net income to net cash provided by operating activities:Depreciation expense6,800Increase in accounts receivableIncrease in merchandise inventoryIncrease in accounts payableDecrease in accrued expenses6,800Net cash provided by operating activities17,600Cash flows from investing activities:Cash payments to purchase fixed assets20,800Net cash used in investing activities20,800Cash flows from financing activities:Cash payments on long-term noteCash receipts from issuing stockNet cash provided by financing activities0Net increase in cash during the yearCash balance, January 1, 2016Cash balance, December 31, 2016$0