a. PK Photography reported net income of $100,000 for 2017. Included in the income statement were depreciation expense of $6,300, patent amortization expense of $4,000, and a gain on disposal of plant assets of $3,600. PK's comparative balance sheets show the following balances.

Calculate net cash provided by operating activities for PK Photography.
b. Alex Company reported the following information for 2017.

Additional information:
1. Operating expenses include depreciation expense of $40,000.
2. Land was sold at its book value for cash.
3. Cash dividends of $85,000 were declared and paid in 2017.
4. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $51,000 and a book value of $36,000 was sold for $34,000 cash.
5. Bonds of $50,000 were redeemed at their face value for cash.
6. Common stock ($1 par) of $170,000 was issued for cash.
Use this information to prepare a statement of cash flows using the indirect method.

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12/31/17 12/31/16 Accounts receivable $21,000 $27,000 6,000 Accounts payable 9,200 ALEX COMPANY Comparative Balance Sheets December 31 2017 59,000 36,000 S 23,000 Increase 62,000 44,000 Accounts receivable 22,000 40,000 Increase 44,000 Increase Prepaid ex 6,000 4,000 2,000 Increase 15,000 Decrease 5,000 70,000 200,000 200,000 Accumulated depreciation-buildings (21,000) (14,000) 7,000 Increase 68,000 5,000 Increase Accumulated depreciation-equipment (28,000) (10,000) 18,000 Increase 183,000 $560,000 $376,000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable 43,000 40,000 3,000 Increase 10,000 10,000 Decrease 50,000 Decrease 100,000 150,000 23 Common stock ($1 par) Retained earnings 0,000 60,000 170,000 Increase 187,000 116,000 71,000 Increase Totals $560,000 $376,000 ALEX COMPANY Income Statement For the Year Ended December 31, 2017 $941,000 Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $475,000 231,000 12,000 2,000 720,000 221,000 65,000 $156,000