Prepare a statement of cash flows for Sanibel Corp. for the year ended December 31, 2017, using the indirect method.

COMPARATIVE BALANCE SHEETSs Increase 2017 $ 650,000 1,260,000 1,538,000 2,680,000 (850,000) 475,000 350,000 $6,103,000 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Island Co. Loan receivable $ 510,000 1,090,000 1,370,000 1,763,000 (760,000) 420,000 450,000 $4,843,000 (Decrease) $ 140,000 170,000 168,000 917,000 (90,000) 55,000 (100,000) $%1,260,000 Total assets Accounts payable Income taxes payable Dividends payable Capital lease obligation Common stock, $1 par Paid-in capital in excess of $ 910,000 75,000 60,000 $1,080,000 $170,000 15,000 40,000 850,000 90,000 100,000 850,000 400,000 2,100,000 400,000 2,100,000 stock 1,298,000 $4,843,000 Retained earnings 1,483,000 185,000 Total liabilities and stockholders' equity $6,103,000 $%1,260,000 Additional information: On December 31, 2016, Sanibel acquired 25% of Island Co.'s common stock for $420,000. On that date, the carrying value of Island's assets and liabilities, which approximated their fair values, was $1,680,000. Island reported income of $220,000 for the yea r ended December 31, 2017. No dividend was paid on Island's common stock during the year 2. During 2016, Sanibel loaned $500,000 to POI Co., an unrelated company. POI made the first semi-annual principal repay- ment of $50,000, plus interest at 10%, on December 31, 2016, POI is current on the loan as of December 31, 2017. 3. On January 2, 2017, Sanibel sold equipment costing $100,000, with a carrying amount of $31,000, for $20,000 cash. 4. On December 31, 2017, Sanibel entered into a capital lease for a new factory. The present value of the annual rental pay- ments is $850,000, which equals the fair value of the building. Sanibel made the first rental payment of $120,000 when due on January 2, 2018 5. Net income for 2017 was $285,000 6. Sanibel declared and paid cash dividends for 2017 and 2016 as follows 2017 2016 Declared Paid Amount December 15, 2017 February 28, 2018 $100,000 December 15, 2016 February 28, 2017 $60,000