The 2017 comparative balance sheet and income statement or Wnitbey Group Inc. follow: WHITBEY GROUP INC. Balance Sheet August 31, 2017 and 2016 2017 2016 Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventories Prepaid expenses $ 47,000 415,000 6,000 993,000 17,000 1,009,000 401,000 $2,888,000 156,000 431,000 9,000 899,000 22,000 937,000 200,000 $2,654,000 Plant and equipment, net Land Total assets Current liabilities Accounts payable Interest payable Wages payable Lease liabilities $114,000 63,000 71,000 181,000 73,000 S 179,000 67,000 14,000 187,000 38,000 Income tax payable Long-term liabilities Notes payable Shareholders' equity Common shares Retained earnings 450,000 650,000 1,411,000 525,000 $2,888,000 1,223,000 296,000 $2,654,000 Total liabilities and shareholders' equity WHITBEY GROUP INC. Income Statement For the Year Ended August 31, 2017 Revenues: $4,380,000 17,000 4,397,000 Sales revenue Interest revenue Total revenues Expenses Cost of goods sold Salaries expense Amortization expense Other operating expenses Interest expense Income tax expense $1,952,000 814,000 253,000 497,000 246,000 169,000 3,931,000 $ 466,000 Total expenses Net income "Includes lease liability and prepaid expense. Whitbey Group had no non-cash investing and financing transactions during 2017. During the year, there were no sales of land or plant and equipment, no issuances of notes payable, and no repurchase of common shares. Problem 17-4A Use the Whitbey Group Inc. data from Problem 17-3A Required 1. Prepare the 2017 cash flow statement by the indirect method. If your instructor also assigned Problem 17-3A, prepare only the operating activities section. 2. Evaluate the 2017 cash flow for this company