Prepare a statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Harding Industries, Inc.

Additional information follows:
a. Sold plant asset for $4,300. The original cost of this plant asset was $10,300 and it had $10,000 of accumulated depreciation associated with it.
b. Paid $6,500 on the bonds payable; issued $48,500 of new bonds payable.
c. Declared and paid cash dividends of $36,800.
d. Purchased new investment for $12,000. Paid cash.
e. Purchased new equipment for $40,300. Paid cash.
Requirement
Prepare a statement of cash flows for Harding Industries, Inc., for the year ended December 31, 2017, using the indirect method.

Harding Industries, Inc. Income Statement For the Year Ended December 31, 2017 1. 956,000 381,000 575,000 5 Sales revenues Less: Cost of goods sold 7 Gross profit 8 Less operating expenses: Salarles and wages expense 190,000 10,500 52,000 84,000 9. Insurance expense Depreclation expense 10 11 Other operating expenses 12 13 14 Operating Income 15 Plus other income and less other expenses: Interest expense Totaloperating expenses 336,500 238,500 5,800 4,000 16 Gain on sale of PP&E 17 18 19 Income before Income taxes 20 Less: Income tax expense 21 Net Income 22 Total other income and expenses 1,800 236,700 71,010 165,690 IS Harding Industries, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 5 Current assets: 6 Cash Accounts recelvable 8 Inventory 9 Prepald Insurance Total current assets 474.000 S 71.000 329,000 8,500 882,500 |$ 286,000 125,000 216,000 5,500 10 632,500 11 12 Property, plant, and equlpment 13 Less: Accumulated depreclation 14 Investments 15 Total assets 16 17 18 Current liabilities: 19 Accounts payable (Inventory puichases) 20 Wages payable 21 Interest payable 22 Income taxes payable 23 Other accrued expenses payable Total current llabilitles 625,000 S (152,000) 87,000 1,442,500 595,000 (0,00 75,000 1,192,500 Llabilities 59,000 16,300 1,500 62,010 32,000 17,300 700 13,000 3,200 66,200 6,500 145,310 $ 24 25 26 Long-tem llabilitles 27 Total liabllitles 28 68,000 26,000 213,310 $ 92,200