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Exercise 12-7 Shown below are comparative balance sheets for Indigo Corporation. Indigo Corporation Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 141,984 $ 45,936 Accounts receivable 183,744 158,688 Inventory 348,696 394,632 Land 167,040 208,800 Equipment 542,880 417,600 Accumulated depreciationequipment (137,808 ) (66,816 ) Total $1,246,536 $1,158,840 Liabilities and Stockholders Equity Accounts payable $ 81,432 $ 89,784 Bonds payable 313,200 417,600 Common stock ($1 par) 451,008 363,312 Retained earnings 400,896 288,144 Total $1,246,536 $1,158,840 Additional information: 1. Net income for 2017 was $194,184. 2. Depreciation expense was $70,992. 3. Cash dividends of $81,432 were declared and paid. 4. Bonds payable amounting to $104,400 were redeemed for cash $104,400. 5. Common stock was issued for $87,696 cash. 6. No equipment was sold during 2017. 7. Land was sold for its book value. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)). Indigo Corporation Statement of Cash Flows December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land $ 194184 Adjustments to reconcile net income to Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land $ 70992 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land -8352 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land -25056 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land 45936 83520 Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash 277704 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land 137808 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land 125280 Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash 263088 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land -104400 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land 87696 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Stock Net Income Payment of Cash Dividends Purchase of Equipment Redemption of Bonds Sale of Land 81432 Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash 64728 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash 605520 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash 45936 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash $ 651456 IE

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