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The 2017and 2016 balance sheets of WilsonWilsonCorporation follow. The 2017 income statement is also provided. WilsonWilso had no non cash investing and financing transactions during 2017.During the year, the company sold equipment for $15,800,which had originally cost $13,600 and had a book value of $11,800.The company did not issue any notes payable during the year but did issue common stock for $37,000.The company purchased plant assets and long-term investments with cash.

Wilson Corporation
Income Statement
For the Year Ended December 31, 2017
Sales revenues			$348,000
Less: Cost of goods sold			77,000
Gross profit			$271,000
Less operating expenses:
Salaries and wages expense		$25,000
Depreciation expense		4,000
Other operating expenses		12,500
	Total operating expenses		41,500
Operating income			$229,500
Plus other income and less other expenses:
Interest expense		9,300
Gain on sale of PP&E		4,000
	Total other income and expenses		5,300
Income before income taxes			224,200
Less: Income tax expense			37,300
Net income			$186,900

Wilson Corporation
Comparative Balance Sheets
December 31, 2017 and 2016
Assets		2017	2016
Current assets:
Cash		$52,000	$24,000
Accounts receivable		32,100	29,500
Inventory		86,200	94,200
Prepaid insurance		3,400	2,500
Total current assets		$173,700	$150,200
Property, plant, and equipment		153,000	139,000
Less: Accumulated depreciation		(30,000)	(27,800)
Investments		118,000	0
Total assets		$414,700	$261,400
Liabilities
Current liabilities:
Accounts payable		$33,500	$36,100
Wages payable		2,600	7,700
Interest payable		2,500	0
Income taxes payable		6,200	0
Other accrued expenses payable		18,700	22,600
Total current liablities		$63,500	$66,400
Long-term liabilities		73,000	119,000
Total liabilities		$136,500	$185,400
Stockholders' equity
Common stock		$108,000	$71,000
Retained earnings		170,200	5,000
Total stockholders' equity		$278,200	$76,000
Total liabilities and equity		$414,700	$261,400

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1. Prepare the statement of cash flows for WilsonWilson Corporation for 2017 using the indirect method.

2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response.

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