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Condensed financial data of Vaughn Company for 2017 and 2016 are presented below. VAUGHN COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2016 2017 $1,810 $1,160 Cash Receivables 1,740 1,310 Inventory 1,630 1,890 Plant assets 1,910 1,720 Accumulated depreciation (1,220 ) (1,180 ) Long-term investments (held-to-maturity) 1,280 1,420 $7,150 $6,320 Accounts payable $1,220 $920 Accrued liabilities 190 240 Bonds payable 1,420 1,580 Common stock 1,730 1,940 Retained earnings 1,850 2,380 $7,150 $6,320 VAUGHN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 $6,960 Sales revenue Cost of goods sold 4,780 Gross margin 2,180 Selling and administrative expenses 920 Income from operations 1,260 Other revenues and gains Gain on sale of investments 80 Income before tax 1,340 Income tax expense 550 Net income 790 Cash dividends 260 $530 Income retained in business Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) VAUGHN COMPANY Statement of Cash Flows (Indirect Method) $1 Adjustments to reconcile net income to $1

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