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The comparative balance sheets and income statement for Adams Corporation follow: Balance Sheets As of December 31 2017 2016 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity $ 71,413 28,186 158, 365 2,370 255,590 (143,890) 197,210 $ 569,244 $ 40,290 20,670 174,200 4,740 288,930 (232,610) 84,310 $ 380,530 $ 68,860 31,010 78, 110 26,580 251,500 217,874 $ 569,244 201,500 74,340 $ 380,530 Income Statement For the Year Ended December 31, 2017 Sales $1,497,000 Cost of goods sold (795,606) Gross profit 701,394 Operating expenses Depreciation expense (21,820) Rent expense (26,920) Salaries expense (250,900) Other operating expenses (258, 220) Net income $ 143,534 Other Information 1. Purchased land for $112,900. 2. Purchased new equipment for $97,600. 3. Sold old equipment that cost $130,940 with accumulated depreciation of $110,540 for $20,400 cash. 4. Issued common stock for $50,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) ADAMS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Add: Increases in current assets and Decreases in current liabilities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance

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